Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 180 units at $40 10 Sale 140 units 15 Purchase 210 units at $42 20 Sale 170 units 24 Sale 60 units 30 Purchase 240 units at $46
Question #3:
Beginning inventory, purchases, and sales data for portable game players are as follows:
| Apr. 1 | Inventory | 180 units at $40 | |
| 10 | Sale | 140 units | |
| 15 | Purchase | 210 units at $42 | |
| 20 | Sale | 170 units | |
| 24 | Sale | 60 units | |
| 30 | Purchase | 240 units at $46 |
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.
Date |
Quantity Purchased |
Purchases Unit Cost |
Purchases Total Cost |
Quantity Cost of Merchandise 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 |
Question #5:
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:
| Inventory | Purchases | Sales | |||
| May 1 | 1,550 units at $44 | May 10 | 720 units at $45 | May 12 | 1,200 units |
| 20 | 1,200 units at $48 | 14 | 830 units | ||
| 31 | 1,000 units |
a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
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 |
| May 1 | |||||||||
| May 10 | |||||||||
| May 12 | |||||||||
| May 14 | |||||||||
| May 20 | |||||||||
| May 31 | |||||||||
| May 31 | Balances |
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?
Beginning inventory, purchases, and sales data for portable game players are as follows:
| Apr. 1 | Inventory | 180 units at $40 | |
| 10 | Sale | 140 units | |
| 15 | Purchase | 210 units at $42 | |
| 20 | Sale | 170 units | |
| 24 | Sale | 60 units | |
| 30 | Purchase | 240 units at $46 |
The business maintains a perpetual inventory system, costing by the last-in, first-out method.
Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
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 |
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