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Problem - Perpetual inventory using FIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
June 1 Inventory 75 units at $40
June 6 Sale 60 units
June 14 Purchase 90 units at $42
June 19 Sale 50 units
June 25 Sale 20 units
June 30 Sale 80 units at $45
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
Required -
a. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale?
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?
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