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Ex 6-3 perpetual inventory using fifo
EX 6-3 Perpetual inventory using FIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
|
April 1 |
Inventory |
120 units at $39 |
|
6 |
Sale |
90 units |
|
14 |
Purchase |
140 units at $40 |
|
19 |
Sale |
110 units |
|
25 |
Sale |
45 units |
|
30 |
Purchase |
160 units at $43 |
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.
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?