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om/ilm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssign....; Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows Purchases May 10 May 20 Sales May 12 May 14 May 31 Inventory 1,700 units at $24 1,530 units at $26 2,380 units 2,040 units 1,020 units May 1 3,400 units at $22 Assume that the business man by the first-in, first-out method. Determine the cost of 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 Unit Cost column and in the Inventory Unit Cost column Schedule of Cost of Merchandise Sold FIFO Method Prepaid Cell Phones Cost of Cost of Merchandise Merchandise Merchandise Envetory Sold Quantity Sold Unit Purchases Purchases Total Cost Sold Quantny Unit Cost Total Cost Date Quantity Unit Cost May May1.700 2 Cost Sold Total Cost Quantity inventory Inventory 24 $ 40,800 F11 F12 PrtscPaue F7 F8 #9 F10 F6 ??

Solution

Schedule of cost of merchandise sold FIFO Method Prepaid Cell Phones Date Purchases Quantity Purchases Unit Cost Purchases Total Cost Cost of Merchandise Sold Quantity Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost May 1 3400 22 74800 May 10 1700 24 40800 3400 22 74800 1700 24 40800 May 12 2380 22 52360 1020 22 22440 1700 24 40800 May 14 1020 22 22440 1020 24 24480 680 24 16320 May 20 1530 26 39780 680 24 16320 1530 26 39780 May 31 680 24 16320 340 26 8840 1190 26 30940 May 31 $                       124,440 $        30,940