Menu
support@businesspapershelp.com
+1(805) 568 7317

question perpetual inventory using fifo the business maintains a perpetual inventory 4277755

Question

Perpetual Inventory Using FIFO

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

a. 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 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 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

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

Inventory Total Cost

April 1

120

$ 39

$ 4,680

April 6

 

 

 

 

April 14

 

 

 

 

 

 

 

April 19

 

 

 

 

 

 

 

 

 

April 25

 

 

 

 

 

 

April 30

 

 

 

 

 

 

 

 

 

April 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?

SelectHigherLowerCorrect 1 of Item 2

 

Hide

 

 

a. 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 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 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

 

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

 

Inventory Total Cost

April 1

 

 

 

 

 

 

 

 

 

 

 

 

 

120

 

$ 39

 

$ 4,680

April 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30

 

Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                     

 

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now