Perpetual Inventory using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows April 1st inventory 120 units at $26 April 10th sale 90 units April 15th purchase 140 units at $28 April 20th sale 110 units April 24th sale 40 units April 30th purchase 160 units at $30 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.Uder FIFO, if units are in inventory at two different costs, enter the units with the lower unit cost first in the cost of the merchandise sold unit cost column and inventory unit cost column. B. Based upon the proceeding data, would you expect the inventory to be higher or lower using the last in, first out method?
Perpetual Inventory using FIFO
Beginning inventory, purchases, and sales data for portable game players are as follows
April 1st inventory 120 units at $26
April 10th sale 90 units
April 15th purchase 140 units at $28
April 20th sale 110 units
April 24th sale 40 units
April 30th purchase 160 units at $30
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.Uder FIFO, if units are in inventory at two different costs, enter the units with the lower unit cost first in the cost of the merchandise sold unit cost column and inventory unit cost column.
B. Based upon the proceeding data, would you expect the inventory to be higher or lower using the last in, first out method?
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