Question

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

Apr. 1		Inventory	120 units at $26
10		Sale	90 units
15		Purchase	140 units at $28
20		Sale	110 units
24		Sale	40 units
30		Purchase	160 units at $30

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

a. Determine the cost of the merchandise 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 Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

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

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Answer 1

Cost of the Merchandise Sold Schedule

First-in, First-out Method

Portable Game Players

Date	Goods Purchased			Cost of goods sold			Inventory Balance
	# of Units	Cost per unit	Total Cost	# of Units	Cost per unit	Cost of goods sold	# of Units	Cost per unit	Inventory Balance
Apr. 1							120	26	3,120
Apr. 10				90	26	2,340	30	26	780
Apr. 15	140	28	3,920				30	26	780
							140	28	3,920
Apr. 20				30	26	780	60	28	1,680
				80	28	2,240
Apr. 24				40	28	1,120	20	28	560
Apr. 30	160	30	4,800				20	28	560
							160	30	4,800
Apr. 30						$6,480	180		5,360