24% D Fr 5:53 AM y Bookmarks People Window Help CengageNow2 | Online teaching an

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24% D Fr 5:53 AM y Bookmarks People Window Help CengageNow2 | Online teaching and learning resource from Cengage Learning eBook Show Me HowCaltor Perpetual tnventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows 67 units at $70 50 units 28 units at $74 23 units 9 units 40 units at $78 November 1 Inventory 10 Sale 15 Purchese 20 Sale 24 Sale 0 Purchase The business maintains a perpetual inventery system, costing by the first-in, first-out method Determine the cost of the goods sold for each sae and the inventory balance after sale, peserting the data nue the form iflustrated in m a. 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 Goods Sold Unit Cost coluren and in the teventory Unit Cost column. Cost of the Goods Soid Schedule Firtt-in, Finst-out Method Date Quantty rchasesPurchanesQuantity Cos of Goods Sold Cost of Goods Sold Ivetory ventory QuantityUnit Cost Total ContSd unit Cost Next work seved

Explanation / Answer

Cost of goods sold sechedule

First In first out

b)Inventory will be reported at Higher value as inventory purchased at lower cost are sold first so ending inventory left out of latest purchase made at higher cost.

Cost of goods sold sechedule

First In first out

Date Quantity purchased Purchase unit cost Purchase total cost quantity sold cost of goods sold unit cost cost of goods sold Total cost Inventory quanity Inventory unit cost inventory total cost Nov1 67 70 4690 Nov10 50 70 3500 67-50=17 70 1190 Nov 15 28 74 2072 17 70 1190 28 74 2072 Nov 20 17 70 1190 23-17=6 74 444 28-6=22 74 1628 Nov24 9 74 666 22-9=13 74 962 Nov30 40 78 3120 13 74 962 40 78 3120 Balance 5800 962+3120=4082

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