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Perpetual inventory using FIFO

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

Date Line Item Description Units and Cost

Nov. $1$ Inventory $56$ units at $$51$

$10$ Sale $44$ units

$15$ Purchase $31$ units at $$54$

$20$ Sale $21$ units

$24$ Sale $12$ units

$30$ Purchase $29$ units at $$57$

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

Question Content Area

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.

First$-$in$,$ First$-$out Method

DVD Players

Date

Quantity

Purchased

Purchases

Unit Cost

Purchases

Total Cost

Quantity

Sold Cost of

Goods Sold

Unit Cost Cost of

Goods Sold

Total Cost

Inventory

Quantity

Inventory

Unit Cost

Inventory

Total Cost

Nov. $1$ Nov. $1$

$56$

Nov. $1$

$51$

Nov. $1$

$2,856$

Nov. $10$ Nov. $10$

$44$

Nov. $10$

$51$

Nov. $10$

$2,244$

Nov. $10$

$12$

Nov. $10$

$51$

Nov. $10$

$612$

Nov. $15$ Nov. $15$

$31$

Nov. $15$

$54$

Nov. $15$

$1,674$

Nov. $15$

$12$

Nov. $15$

$51$

Nov. $15$

$612$

fill in the blank $33$a$8$b$4$fd$7$fed$037\_16$

$31$

fill in the blank $33$a$8$b$4$fd$7$fed$037\_17$

$54$

fill in the blank $33$a$8$b$4$fd$7$fed$037\_18$

$1,674$

Nov. $20$ Nov. $20$

$12$

Nov. $20$

$51$

Nov. $20$

$612$

Nov. $20$

Nov. $20$

Nov. $20$

fill in the blank $33$a$8$b$4$fd$7$fed$037\_25$

fill in the blank $33$a$8$b$4$fd$7$fed$037\_26$

$54$

fill in the blank $33$a$8$b$4$fd$7$fed$037\_27$

Nov. $24$ Nov. $24$

Nov. $24$

$54$

Nov. $24$

Nov. $24$

Nov. $24$

Nov. $24$

Nov. $30$ Nov. $30$

Nov. $30$

Nov. $30$

Nov. $30$

Nov. $30$

Nov. $30$

fill in the blank $33$a$8$b$4$fd$7$fed$037\_40$

fill in the blank $33$a$8$b$4$fd$7$fed$037\_41$

fill in the blank $33$a$8$b$4$fd$7$fed$037\_42$

Nov. $30$ Balances Nov. $30$

Nov. $30$

Question Content Area

b$.$ Based upon the preceding data, would you expect the inventory to be higher or lower using the last$-$in$,$ first$-$out method?

Lower