Answer Happy

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows: Inventory 40 units @ $67 Sale 28 units Purchase Apr. 1 10 15 20 24 30 20 units @ $71 18 units. Sale Sale 11 units Purchase 36 units @ $74 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 Um Cost column and in the Inventory Unit Cost column.
Date Apr. 1 Apr. 10 Apr. 15 Apr. 20 Apr. 24 Apr. 30 Quantity Purchased 20 36 Apr. 30 Balances Purchases Purchases Unit Total Cost Cost 71 74 1420 2.264 Perpetual Inventory Account First-in, First-out Method Portable Game Players. Quantity Cost of Merchandise Sold 28 000 Cost of Cost of Merchandise Merchandise Sold Sold Unit Cost Total Cost 67 71 71 1.120 1.278 781 0 Inventory Inventory Total Cost 2.600 Inventory Unit Quantity Cost 40 67 000 000 00 000 0000 00 b. Based upon the preceding data, would you expect the ending inventory to be higher or lower using the last-in, first-out method? Higher novinus