Perpetual Inventory using FIFO The following units of a particular item were available for sale during the calendar year: Jan, 1 Inventory 4,000 units at $50 Apr. 19 Sale 2,500 units June 30 Purchase 4,500 units at $54 Sept. 2 Sale 5,000 units Nov. 15 Purchase 2,000 units at $56 The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two differ 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 Jan. 1 Apr. 19 June 30 June 30 Sept. 2 Sept. 2 Nov. 15 Nov. 15 Dec. 31 Purchases Quantity 4,500 2,000 Balances Purchases Unit Cost 54 56 Purchases Total Cost 243,000 112,000 Cost of Goods Sold Quantity 2,500 1,500 3,500 FIFO Method Cost of Goods Sold Unit Cost 000 50 50 54 Cost of Goods Sold Total Cost 125,000 75,000 189,000 389,000 Inventory Quantity 4,000 1,500 1,500 4,500 2,000 Inventory Unit Cost 50 50 50 54 54 54 56 Inventory Total Cost 200,000 75,000 75,000 243,000 112,000

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 2PB: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...
icon
Related questions
Topic Video
Question

9

Perpetual Inventory using FIFO
The following units of a particular item were available for sale during the calendar year:
Jan, 1
Inventory
4,000 units at $50
Apr. 19
Sale
2,500 units
June 30
4,500 units at $54.
5,000 units
2,000 units at $56
Sept. 2
Nov. 15.
The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. Under FIFO, If units are in Inventory at two differe
the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
FIFO Method
Date
Jan. 1
Apr. 19
June 30
June 30
Sept. 2
Sept. 2
Nov. 15
Nov. 15
Purchase
Dec. 31
Sale
Purchase
Purchases
Quantity
4,500
2,000
Balances
Purchases
Unit Cost
54
56
Purchases
Total Cost
243,000
112,000
Cost of Goods Sold
Quantity
2,500
1,500
3,500
Cost of Goods Sold
Unit Cost
50
50
54
Cost of Goods Sold
Total Cost
125,000
75,000
189,000
389,000
Inventory
Quantity
4,000
1,500
1,500
4,500
GO
2,000
Inventory
Unit Cost
50
50
50
54
$4
54
56
Inventory
Total Cost
200,000
75,000
75,000
243,000
112,000
Transcribed Image Text:Perpetual Inventory using FIFO The following units of a particular item were available for sale during the calendar year: Jan, 1 Inventory 4,000 units at $50 Apr. 19 Sale 2,500 units June 30 4,500 units at $54. 5,000 units 2,000 units at $56 Sept. 2 Nov. 15. The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. Under FIFO, If units are in Inventory at two differe the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column. FIFO Method Date Jan. 1 Apr. 19 June 30 June 30 Sept. 2 Sept. 2 Nov. 15 Nov. 15 Purchase Dec. 31 Sale Purchase Purchases Quantity 4,500 2,000 Balances Purchases Unit Cost 54 56 Purchases Total Cost 243,000 112,000 Cost of Goods Sold Quantity 2,500 1,500 3,500 Cost of Goods Sold Unit Cost 50 50 54 Cost of Goods Sold Total Cost 125,000 75,000 189,000 389,000 Inventory Quantity 4,000 1,500 1,500 4,500 GO 2,000 Inventory Unit Cost 50 50 50 54 $4 54 56 Inventory Total Cost 200,000 75,000 75,000 243,000 112,000
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,