Question Assume that the business in exercise 7-5 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 4. Inventory: May 1 = 1550 units at $44 Purchases: May 10 = 720 Units at $45 May 20 = 1200 units at $48 Sales: May 12 = 1200 units May 14 = 830 units May 31 = 1000 units

Question

Question

Assume that the business in exercise 7-5 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 4.

Inventory:

May 1 = 1550 units at $44

Purchases:

May 10 = 720 Units at $45

May 20 = 1200 units at $48

Sales:

May 12 = 1200 units

May 14 = 830 units

May 31 = 1000 units

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