Perpetual inventory using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: 56 units at $52 Nov. 1 Inventory 10 Sale 15 Purchase 20 Sale 24 Sale 30 Purchase 44 units 24 units at $55 20 units 11 units 32 units at $57 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
Perpetual inventory using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: 56 units at $52 Nov. 1 Inventory 10 Sale 15 Purchase 20 Sale 24 Sale 30 Purchase 44 units 24 units at $55 20 units 11 units 32 units at $57 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ex.4.
Transcribed Image Text:Perpetual inventory using FIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
56 units at $52
44 units
24 units at $55
20 units
11 units
32 units at $57
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
Nov. 1 Inventory
10 Sale
a. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units
are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
Date
Nov. 1
Nov. 10
Nov. 15
Nov. 20
15 Purchase
20 Sale
24 Sale
30 Purchase
Nov. 24
First-in, First-out Method
DVD Players
Cost of
Cost of
Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory
Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Unit Cost Total Cost
B
000
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