Perpetual inventory using fifo

beginning inventory, purchases, and sales data for prepaid cell phones for december are as follows:

inventory purchases sales
dec. 1 420 units at $27 dec. 10 210 units at $29 dec. 12 294 units
dec. 20 189 units at $31 dec. 14 252 units
dec. 31 126 units
assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. determine the cost of 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.

schedule of cost of goods sold
fifo method
prepaid cell phones
date purchases quantity purchases unit cost purchases total cost cost of goods sold quantity cost of goods sold unit cost cost of goods sold total cost inventory quantity inventory unit cost inventory total cost
dec. 1 $ $
dec. 10 $ $
dec. 12 $ $
dec. 14
dec. 20
dec. 31
dec. 31 balances

Inventory, often known as stock, refers to the items and supplies that a company keeps for the purpose of resale, manufacturing, or use. Inventory management is largely concerned with establishing the shape and positioning of stocked products.

There are four forms of inventory: raw materials/components, work in progress (WIP), finished items, and maintenance and repair (MRO).

Inventory refers to a company's ready-to-sell goods and products, as well as the raw materials utilized to manufacture them. Inventory can be divided into three categories: raw materials, work-in-progress, and finished goods.

There are four forms of inventory: raw materials/components, work in progress (WIP), finished items, and maintenance and repair (MRO).

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