Perpetual Inventory Using FIFOBeginning inventory, purchases, .docx

Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for portable
DVD players are as follows:
June 1
Inventory
64 units @ $95
6
Sale
52 units
14
Purchase
38 units @ $101
19
Sale
21 units
25
Sale
21 units
30
Purchase
35 units @ $108
The business maintains 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 Exhibit 3.
Hide
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
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
June 1
64
$ 95
$ 6,080
June 6

MACROBUTTON HTMLDirect
$ MACROBUTTON HTMLDirect
June 14

June 19

June 25

June 30

June 30
Balances
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for portable

DVD players are as follows:
June 1
Inventory
43 units @ $53
6
Sale
33 units
14
Purchase
58 units @ $55
19
Sale
32 units
25
Sale
9 units
30
Purchase
33 units @ $58
The business maintains a perpetual inventory system, costing by
the last-in, first-out 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 4.
Hide

Under LIFO, if units are in inventory at two different costs,
enter the units with the HIGHER unit cost first in the Cost of
Merchandise Sold Unit Cost column and LOWER unit cost first
in the Inventory Unit Cost column.
Schedule of Cost of Merchandise Sold
LIFO Method
Portable DVD Players
Date
Quantity Purchased
Purchases Unit Cost
Quantity Sold
Inventory Quantity

Inventory Unit Cost
June 1
43
$ 53
$ 2,279
June 6

June 19

June 25

June 30

June 30
Balance
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for prepaid cell

phones for July are as follows:
Inventory
Purchases
Sales
July 1
3,600 units at $30
July 10
1,800 units at $32
July 12
2,520 units
July 20
1,620 units at $34
July 14
2,160 units
July 31

1,080 units
Hide
a. Assuming that the perpetual inventory system is used,
costing by the LIFO method, determine the cost of merchandise
sold for each sale and the inventory balance after each sale.
LIFO Method
Prepaid Cell Phones
Date
Quantity Purchased
Purchases Unit Cost
Quantity Sold

Inventory Quantity
Inventory Unit Cost
July 1
3,600
$ 30
$ 108,000
July 10

July 12

July 14
July 20

July 31

July 31
Balances

Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for prepaid cell
phones for August are as follows:
Inventory
Purchases
Sales
August 1
2,100 units at $39
August 10

1,050 units at $41
August 12
1,470 units
August 20
945 units at $43
August 14
1,260 units
August 31
630 units
Hide
Assuming that the perpetual inventory system is used, costing
by the FIFO method, determine the cost of the merchandise sold
for each sale and the inventory balance after each sale.
FIFO Method

Prepaid Cell Phones
Date
Purchases Quantity
Purchases Unit Cost
Cost of Merchandise Sold Quantity
Inventory Quantity
Inventory Unit Cost
Aug. 1

2,100
$ 39
$ 81,900
Aug. 10

Aug.12

Aug. 14

Aug. 20

Aug. 31

Aug. 31
Balances
$
$

FIFO and LIFO Costs Under Perpetual Inventory System
The following units of a particular item were available for sale
during the year:
Beginning inventory
21 units @ $41
Sale
13 units @ $66
First purchase
22 units @ $43
Sale
21 units @ $68
Second purchase
24 units @ $44
Sale
11 units @ $70
The firm uses the perpetual inventory system, and there are 22
units of the item on hand at the end of the year.
a. What is the total cost of the ending inventory according to
FIFO?
$

b. What is the total cost of the ending inventory according to
LIFO?
$

Perpetual Inventory Using FIFOBeginning inventory, purchases, .docx

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Perpetual Inventory Using FIFOBeginning inventory, purchases, .docx