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Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data fo

ID: 2556372 • Letter: P

Question

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

November 1 Inventory 38 units at $66 10 Sale 25 units 15 Purchase 20 units at $69 20 Sale 17 units 24 Sale 9 units 30 Purchase 24 units at $73 Cost of the Goods Sold Schedule First-in, First-out Method DVD Players Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Inventory Unit Cost Inventory Total Cost Date Nov. 1 Nov. 10 Nov. 15 0 0 Nov. 20 Nov. 24 0 III 0 - - * Nov. 30 Nov. 30 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?

Explanation / Answer

Cost of Goods Sold Schedule

FIFO METHOD

Date

Qty Purchased

Unit Cost

Total Purchase Cost

Qty Sold

cost

Cost of goods sold

Inv.Qty

Unit Cost

Total cost

Nov1

38

66

2508

Nov10

25

66

1650

13

66

858

Nov15

20

69

1380

13

66

858

20

69

1380

Nov20

13

66

858

4

69

276

16

69

1104

Nov24

9

69

621

7

69

483

Nov30

24

73

1752

7

69

483

24

73

1752

TOTAL

3405

2235

Total Cost of goods sold        =        $ 3405

Ending Inventory Balance    =       $ 2235

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ALL THE BEST !!!

Date

Qty Purchased

Unit Cost

Total Purchase Cost

Qty Sold

cost

Cost of goods sold

Inv.Qty

Unit Cost

Total cost

Nov1

38

66

2508

Nov10

25

66

1650

13

66

858

Nov15

20

69

1380

13

66

858

20

69

1380

Nov20

13

66

858

4

69

276

16

69

1104

Nov24

9

69

621

7

69

483

Nov30

24

73

1752

7

69

483

24

73

1752

TOTAL

3405

2235

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