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View Full Version : Perpetual Lifo and FIFO


bzare02
Mar 23, 2008, 07:15 PM
I need help with figuring out how to do this Problem, here it is:

Beginning inventorym puchases, and sales data for portable MP3 players are as follows:

Nov. 1 Inventory 70 units at $40

5 sale 52 units

16 purchases 30 units at $42

21 Sale 24 units

24 Sale 8 units

30 Purchase 14 units at $45

The business maintains a perpetual inventory system, costing by the FIFO method. Determine the cost of merchandise sold for each sale and the inventory lbalance after each sale, presenting he data in the form illustrated above.

I was able to calculate the cost of merchandise sold, which was 760. However I am having problem solving for the inventory.

bzare02
Mar 23, 2008, 07:22 PM
Never mind, I figured it out.

I just subtracted the sale units from the purchases for each and then multiplied each with their respected cost.

The inventory is 518.