Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
June 1
Inventory
44 units @ $65
6
Sale
34 units
14
Purchase
20 units @ $69
19
Sale
17 units
25
Sale
7 units
30
Purchase
30 units @ $73
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
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 4.
a. 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 DVD Players
Date Quantity Purchases Purchases Quantity Cost of Merchandise Cost of Merchandise Inventory Inventory Inventory
Purchased Unit Cost Total Cost Sold Sold Unit Cost Sold Total Cost Quantity Unit Cost Total Cost
June
1
June
6
June
14
June
19
