Question

Chapter 7 Homework Assignment (pan eBook Show Me How Calculator Print Item Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 79 units @ $48 10 Sale 53 units 15 Purchase 42 units @ $51 20 Sale 32 units 24 Sale 23 units 30 Purchase 22 units @ $53 The business maintains a perpetual inventory system, costing by the first-in, first-out method. 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. a. 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 Unit Cost column and in the Inventory Unit Cost columo. Cost of the Merchandise Sold Schedule First-In, First-out Method Portable DVD Players Quantity Purchases Purchases Quantity Cost of Cost of Merchandise Cost of Merchandise Sold Inventory Inventory Inventory Purchased Unit Cost Total Cost Merchandise Sold Sold Unit Cost Total Cost Quantity Unit Cost Total Cost Apr 3,792 Apr 53 2,544 → 10 26 1.248 Apr Date 1 79 48 ✓ 18 18

Answer 1

Solution:

Cost of Merchandise Sold Schedule

First in, First out Method

Portable DVD Players

Date	Quantity Purchase	Purchases unit cost	Purchases Total cost	Quantity cost of merchandise sold	Cost of merchandise unit cost	Cost of merchandise sold total cost	Inventory Quantity	Inventory Unit cost	Inventory Total cost
Apr. 1							79	$48	$3,792
Apr. 10				53	$48	$2,544	26	$48	$1,248
Apr. 15	42	$51	$2 142				26	$48	$1,248
							42	$51	$2,142
Apr. 20				26	$48	$1248
				6	$51	$306	36	$51	$1,836
Apr. 23				23	$51	$1,173	13	$51	$663
Apr. 30	22	$53	$1,166				13	$51	$663
Apr. 30	Balance						22	$53	$1,166
						$5,271			$1,829

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