Question

Perpetual Inventory Using FIFO

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

November 1		Inventory	42 units at $45
10		Sale	28 units
15		Purchase	21 units at $48
20		Sale	23 units
24		Sale	7 units
30		Purchase	24 units at $50

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 Merchandize Sold Schedule
FIFO
Portable DVD Player
Date	Quantity Purchased	Purchase Unit Cost	purchase Total Cost	Quantity Cost of merchadize sold	Cost of merchadize sold Unit Cost	Cost of merchadize sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Apr. 1			-				42.00	45.00	1,890.00
Apr. 10				28.00	45.00	1,260.00	14.00	45.00	630.00
Apr. 15	21.00	48.00	1,008.00				14.00	45.00	630.00
							21.00	48.00	1,008.00
Apr. 20				14.00	45.00	630.00	12.00	48.00	576.00
				9.00	48.00	432.00
Apr. 24				7.00	48.00	336.00	5.00	48.00	240.00
Apr. 30	24.00	50.00	1,200.00				5.00	48.00	240.00
							24.00	50.00	1,200.00
Total	45.00		2,208.00	58.00		2,658.00	29.00		1,440.00