2024 – EX 6 3 Perpetual inventory using FIFO Beginning inventory purchases and sales data for portable DVD players are as follows April

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?