Question

Beginning inventory, purchases, and sales data for dvd players are as follows: november 1 inventory 120 units at $39 10 sale 90 units 15 purchase 140 units at $40 20 sale 110 units 24 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 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. cost of the goods sold schedule first-in, first-out method dvd players

Answer 1

Answer:

the cost of goods sold:

• November 10 sale = $3,510
• November 20 sale = $1,170 + $3,200 = $4,370
• November 30 sale = $1,800

Explanation:

date                inventory                price           COGS               balance

Nov. 1        purchase 120 units      $39                                      $4,680

Nov. 10        sale 90 units             90 x $39 = $3,510                 $1,170

Nov. 15     purchase 140 units      $40                                       $6,770

Nov. 20        sale 110 units            30 x $39 = $1,170               $5,600

                                                      80 x $40 = $3,200             $2,400

Nov. 24        sale 45 units            45 x $40 = $1,800                 $600

Nov. 30    purchase 160 units      $43                                      $7,480

Answer 2

Answer:

Part 1 Determine the cost of the goods sold for each sale

November 10 :

90 units × $ 39 = $3,510

November 20 :

30 units × $ 39 = $1,170

80 units × $ 40 = $3,200

Total Cost         = $4,300

November 24 :

45 units × $ 40  = $1,800

Part 2 The inventory balance after each sale

November 10 :

30 units × $ 39 = $1,170

November 20 :

60 units × $ 40 = $2,400

November 24 :

15 units × $ 40  = $600

Explanation:

First in First Out Method is build on the premise that inventory bought in first will be the first to be sold.