Perpetual inventory using FIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
Nov. 1 Inventory
47 units at $91
10 Sale
35 units
15 Purchase
26 units at $96
20 Sale-
17 units
24 Sale
10 units
30 Purchase
23 units at $102
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
a. Determine the cost of goods 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 Goods Sold Unit Cost-column and in the
Inventory Unit Cost column.