Question

Perpetual Inventory Using The method of inventory costing based on the assumption that the costs of goods sold should be charged against revenue in the order in which the costs were incurred.FIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

November 1		Inventory	53 units at $93
10		Sale	39 units
15		Purchase	25 units at $99
20		Sale	22 units
24		Sale	12 units
30		Purchase	24 units at $105

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the 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.

Cost of the Goods Sold Schedule
First-in, First-out Method
DVD Players
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Nov. 1								$	$
Nov. 10					$	$
Nov. 15		$	$
Nov. 20
Nov. 24
Nov. 30
Nov. 30	Balances					$			$

Answer 1

Cost of the Goods Sold Schedule
First-in, First-out Method
DVD Players
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Nov. 1	$             53	$                    93	$                 4,929				$                  53	$                   93	$                 4,929
Nov. 10				$           39	$                                93	$               3,627	$                  14	$                   93	$                 1,302
Nov. 15	$             25	$                    99	$                 2,475				$                  14	$                   93	$                 1,302
							$                  25	$                   99	$                 2,475
Nov. 20				$           14	$                                93	$               1,302	$                   -	$                   93	$                     -
				$            8	$                                99	$                  792	$                  17	$                   99	$                 1,683
Nov. 24				$           12	$                                99	$               1,188	$                    5	$                   99	$                   495
Nov. 30	$             24	$                  105	$                 2,520				$                    5	$                   99	$                   495
							$                  24	$                  105	$                 2,520
Nov. 30	Balances					$	$                      29		$                  3,015