EX 7-6 Perpetual inventory using FIFO

Assume that the business in Exercise 7-5 maintains a perpetual inventory system, costing 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.

Answer:
Prepaid Cell Phones  Purchases Cost of Merchandise Sold Inventory  
Date  
Quantity 
Unit Cost 
Total Cost  
Quantity 
Unit Cost 
Total Cost  
Quantity 
Unit Cost 
Total Cost July 1        800  45  36,000  10  500  50  25,000     800  500  45  50  36,000  25,000  12     700  45  31,500  100  500  45  50  4,500  25,000  14     100  200  45  50  4,500  10,000   300   50   15,000  20  450  52  23,400     300  450  50  52  15,000  23,400  31     250    50    12,500    50  450  50  52  2,500  23,400  31 Balances      58,500    25,900

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