EX 7-10 Perpetual inventory using FIFO

Assume that the business in Exercise 7-9 maintains a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3.

Answer:


Date
Purchases Cost of Merchandise Sold Inventory
Quantity
Unit
Cost
Total
Cost Quantity
Unit
Cost
Total
Cost Quantity Unit Cost
Total
Cost
Jan. 1 8,000 40.00 320,000
Apr. 19 5,000 40.00 200,000 3,000 40.00 120,000
June 30 12,000 48.00 576,000 3,000
12,000
40.00
48.00
120,000
576,000
Sept. 2 3,000
6,000
40.00
48.00
120,000
288,000
6,000 48.00 288,000
Nov. 15 2,000 50.00 100,000 6,000
2,000
48.00
50.00
288,000
100,000
Dec. 31 Balances 608,000 388,000