Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1   Inventory 120 units at $26 10   Sale 90 units 15   Purchase 140 units at $28 20   Sale 110 units 24   Sale 40 units 30   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. 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. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable Game Players 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         $     $

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
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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 portable game players are as follows:

Apr. 1   Inventory 120 units at $26
10   Sale 90 units
15   Purchase 140 units at $28
20   Sale 110 units
24   Sale 40 units
30   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. 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.

Cost of the Merchandise Sold Schedule
First-in, First-out Method
Portable Game Players
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         $     $
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