Beginning inventory, purchases, and sales data for prepaid cell phones for May a

Question

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

Inventory

14 830 units

31 1,000 units

Assuming that the perpetual inventory system is used, costing by the FIFO 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 5.

Inventory

14 830 units

31 1,000 units

Explanation / Answer

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-May 1550 44 68200 10-May 720 45 32400 1550 44 68200 720 45 32400 12-May 1200 44 52800 350 44 15400 720 45 32400 14-May 350 44 15400 240 45 10800 480 45 21600 20-May 1200 48 57600 240 45 10800 1200 48 57600 31-May 240 45 10800 760 48 36480 440 48 21120 TOTAL 1920 90000 3030 137080 440 21120

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