Question

Perpetual Inventory Using FIFO

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

November 1		Inventory	78 units at $95
10		Sale	59 units
15		Purchase	39 units at $100
20		Sale	23 units
24		Sale	14 units
30		Purchase	29 units at $104

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

FIFO METHOD
		PURHASES	COST OF GOODS SOLD	CLOSING BALANCE
Date	Particulars	Units (A)	Rate	Total Cost	Units (A)	Rate	Total Cost	Units (A)	Rate	Total Cost
Nov, 01	Beginning inventory							78	$               95	$         7,410
Nov, 10	Sales				59	$                   95	$           5,605	19	$               95	$         1,805
Nov, 15	Purchases	39	$                   100.00	$3,900				19	$               95	$         1,805
								39	$            100	$3,900
Nov, 20	Sales				19	$                   95	$           1,805
					4	$                100	$400	35	$            100	$3,500
Nov, 24	Sales				14	$                100	$1,400	21	$            100	$2,100
Nov, 30	Purchases	29	$                   104.00	$3,016				21	$            100	$2,100
								29	$      104.00	$3,016
Nov, 30	Total / Balances	68		$                   6,916	96		$           9,210	50		$5,116