Perpetual Inventory Using FIFO Perpetual Inventory Using FIFCo Beginning Invento
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Perpetual Inventory Using FIFO
Perpetual Inventory Using FIFCo Beginning Inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1Inventory Sale Purchase Sale Sale Purchase 66 units $77 53 units 35 units $B1 22 units 11 units 36 units $B4 10 15 20 30 The business malntalns a perpetual Inventory system, costing by the first-In, first-out method. 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 Exhlblt 3. a. 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 DVD Players Date Quantity Purchased Apr. 1 Apr. 10 Apr. 1535 Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Total Cost 3,082 ,081 2,835 Apr. 20 1,001 Apr. 24 Apr. 3036 3,024 Apr. 30 Balances b. Based upon the preceding data, would you expect the Inventory to be hlgher or lower using the last-In, first-out method?Explanation / Answer
FIFO Date Quantity Purchased Purchased unit cost Purchases Total cost Quantity sold Cost of merchandise sold Unit cost Cost of merchandise sold Total Cost Inventory Quantity Inventory Unit cost Inventory Total cost Apr-01 66 77 5082 Apr-10 53 77 4081 13 77 1001 Apr-15 35 81 2835 13 77 1001 35 81 2835 Apr-20 13 77 1001 26 81 2106 9 81 729 Apr-24 11 81 891 15 81 1215 Apr-30 36 84 3024 15 81 1215 36 84 3024 Apr-30 Balance 6702 4239 LIFO Date Quantity Purchased Purchased unit cost Purchases Total cost Quantity sold Cost of merchandise sold Unit cost Cost of merchandise sold Total Cost Inventory Quantity Inventory Unit cost Inventory Total cost Apr-01 66 77 5082 Apr-10 53 77 4081 13 77 1001 Apr-15 35 81 2835 13 77 1001 35 81 2835 Apr-20 22 81 1782 13 77 1001 13 81 1053 Apr-24 11 81 891 13 77 1001 2 81 162 Apr-30 36 84 3024 13 77 1001 2 81 162 36 84 3024 Apr-30 Balance 6754 4187 b. Based upon the preceeding data, would you expect the Inventory to be higher or lower using the last in first out method ? Lower
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