Question #10: 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 $20 Apr. 19 Sale 2,500 units June 30 Purchase 6,000 units at $24 Sept. 2 Sale 4,500 units Nov. 15 Purchase 1,000 units at $25 The firm maintains a perpetual inventory system. Determine the cost of merchandise 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 different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold FIFO Method Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 fill in $ $ Apr. 19 fill in $ $ fill in fill in fill in June 30 fill in $ $ fill in fill in fill in fill in the blank 16 fill in fill in Sept. 2 fill in t fill in fill in fill in fill in fill in fill in the blank 25 fill in fill in Nov. 15 fill fill in fill in fill in fill in fill in fill in the blank 34 fill in fill in Dec. 31 Balances $ $
Question #10: 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 $20 Apr. 19 Sale 2,500 units June 30 Purchase 6,000 units at $24 Sept. 2 Sale 4,500 units Nov. 15 Purchase 1,000 units at $25 The firm maintains a perpetual inventory system. Determine the cost of merchandise 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 different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold FIFO Method Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 fill in $ $ Apr. 19 fill in $ $ fill in fill in fill in June 30 fill in $ $ fill in fill in fill in fill in the blank 16 fill in fill in Sept. 2 fill in t fill in fill in fill in fill in fill in fill in the blank 25 fill in fill in Nov. 15 fill fill in fill in fill in fill in fill in fill in the blank 34 fill in fill in Dec. 31 Balances $ $
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...
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Question #10:
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 $20 |
Apr. 19 | Sale | 2,500 units |
June 30 | Purchase | 6,000 units at $24 |
Sept. 2 | Sale | 4,500 units |
Nov. 15 | Purchase | 1,000 units at $25 |
The firm maintains a perpetual inventory system. Determine the cost of merchandise 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 different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.
Schedule of Cost of Merchandise Sold FIFO Method |
|||||||||
---|---|---|---|---|---|---|---|---|---|
Purchases | Cost of Merchandise Sold | Inventory | |||||||
Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
Jan. 1 | fill in | $ | $ | ||||||
Apr. 19 | fill in | $ | $ | fill in | fill in | fill in | |||
June 30 | fill in | $ | $ | fill in | fill in | fill in | |||
fill in the blank 16 | fill in | fill in | |||||||
Sept. 2 | fill in t | fill in | fill in | fill in | fill in | fill in | |||
fill in the blank 25 | fill in | fill in | |||||||
Nov. 15 | fill | fill in | fill in | fill in | fill in | fill in | |||
fill in the blank 34 | fill in | fill in | |||||||
Dec. 31 | Balances | $ | $ |
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