eBook
Jan. 1
Inventory
4,000 units at $50
Apr. 19
Sale
2,500 units
June 30
Purchase
4,500 units at $54
Sept. 2
Sale
5,000 units
Nov. 15
Purchase
2,000 units at $56
Contact Tec
Cengage Te
The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method.
Present 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.
FIFO Method
Date
Purchases
Quantity
Purchases
Unit Cost
Purchases
Total Cost
Cost of Goods Sold
Quantity
Cost of Goods Sold
Unit Cost
Cost of Goods Sold
Total Cost
Inventory
Quantity
Inventory
Unit Cost
In
To
<
n. 1
Apr. 19
June 30
June 30
Sept. 2
Sept. 2
Nov. 15
Nov. 15
Dec. 31
Balances
00
00
8
