Perpetual inventory using FIFO The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 3,800 units at $39 Apr. 19 Sale 2,000 units June 30 Purchase 4,300 units at $42 Sept. 2 Sale 5,300 units Nov. 15 Purchase 2,000 units at $43 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. Round your answers for quantity values to the nearest whole number, for unit cost values to the nearest cent, and for total cost values to the nearest dollar.
Perpetual inventory using FIFO
The following units of a particular item were available for sale during the calendar year:
| Jan. 1 | Inventory | 3,800 units at $39 | |
| Apr. 19 | Sale | 2,000 units | |
| June 30 | Purchase | 4,300 units at $42 | |
| Sept. 2 | Sale | 5,300 units | |
| Nov. 15 | Purchase | 2,000 units at $43 |
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. Round your answers for quantity values to the nearest whole number, for unit cost values to the nearest cent, and for total cost values to the nearest dollar.
| Schedule of Cost of Goods Sold FIFO Method |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Purchases | Cost of Goods Sold | Inventory | |||||||
| Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
| Jan. 1 | |||||||||
| Apr. 19 | |||||||||
| June 30 | |||||||||
| Sept. 2 | |||||||||
| Nov. 15 | |||||||||
| Dec. 31 | Balances |
FIFO is first in first out method of inventory valuation or costing, under which inventory which is purchased first will be sold out first and inventory is purchased last will be sold out in the last.
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