Perpetual Inventory Using FIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inventory Purchases Sales May 12,100 units at $29May 101,050 units at $31May 121,470 units 20945 units at $33 141,260 units 31630 unitsAssume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.Schedule of Cost of Merchandise SoldFIFO MethodPrepaid Cell PhonesDateQuantityPurchasedPurchasesUnitCostPurchasesTotalCostCost ofMerchandiseSoldQuantityCost ofMerchandiseSoldUnit CostCost ofMerchandiseSoldTotal CostInventoryQuantityInventoryUnitCostInventoryTotalCostMay 1 fill in the blank 1$fill in the blank 2$fill in the blank 3May 10fill in the blank 4$fill in the blank 5$fill in the blank 6 fill in the blank 7fill in the blank 8fill in the blank 9 fill in the blank 10fill in the blank 11fill in the blank 12May 12 fill in the blank 13$fill in the blank 14$fill in the blank 15fill in the blank 16fill in the blank 17fill in the blank 18 fill in the blank 19fill in the blank 20fill in the blank 21May 14 fill in the blank 22fill in the blank 23fill in the blank 24 fill in the blank 25fill in the blank 26fill in the blank 27fill in the blank 28fill in the blank 29fill in the blank 30May 20fill in the blank 31fill in the blank 32fill in the blank 33 fill in the blank 34fill in the blank 35fill in the blank 36 fill in the blank 37fill in the blank 38fill in the blank 39May 31 fill in the blank 40fill in the blank 41fill in the blank 42 fill in the blank 43fill in the blank 44fill in the blank 45fill in the blank 46fill in the blank 47fill in the blank 48May 31Balances $fill in the blank 49 $fill in the blank 50

Name: Perpetual Inventory Using FIFOBeginning inventory, purchases, and sale
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Description: Perpetual Inventory Using FIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inventory Purchases Sales May 12,100 units at $29May 101,050 units at $31May 121,470 units 20945 units at $33 14

Perpetual inventory record is a practice in which changes in inventory levels are recorded in the…

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Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 3E: Perpetual inventory using FIFO Beginning inventory, purchases, and sales data for DVD players are as...

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Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:

Inventory		Purchases		Sales
May 1	2,100 units at $29	May 10	1,050 units at $31	May 12	1,470 units
		20	945 units at $33	14	1,260 units
				31	630 units

Assume that the business maintains a perpetual inventory system, costing by the first-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 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.

Schedule of Cost of Merchandise SoldFIFO MethodPrepaid Cell Phones

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Cost of Merchandise Sold Quantity	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
May 1							fill in the blank 1	$fill in the blank 2	$fill in the blank 3
May 10	fill in the blank 4	$fill in the blank 5	$fill in the blank 6				fill in the blank 7	fill in the blank 8	fill in the blank 9
							fill in the blank 10	fill in the blank 11	fill in the blank 12
May 12				fill in the blank 13	$fill in the blank 14	$fill in the blank 15	fill in the blank 16	fill in the blank 17	fill in the blank 18
							fill in the blank 19	fill in the blank 20	fill in the blank 21
May 14				fill in the blank 22	fill in the blank 23	fill in the blank 24
				fill in the blank 25	fill in the blank 26	fill in the blank 27	fill in the blank 28	fill in the blank 29	fill in the blank 30
May 20	fill in the blank 31	fill in the blank 32	fill in the blank 33				fill in the blank 34	fill in the blank 35	fill in the blank 36
							fill in the blank 37	fill in the blank 38	fill in the blank 39
May 31				fill in the blank 40	fill in the blank 41	fill in the blank 42
				fill in the blank 43	fill in the blank 44	fill in the blank 45	fill in the blank 46	fill in the blank 47	fill in the blank 48
May 31	Balances					$fill in the blank 49			$fill in the blank 50

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