Assume that the business in Exercise 7-5 maintains a perpetual inventory system, costing by the first-in, first-out method

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
Date
Purchases Cost of Merchandise Sold Inventory
Quantity
Unit
Cost
Total
Cost Quantity
Unit
Cost
Total
Cost Quantity
Unit
Cost
Total
Cost
Aug. 1 775 44 34,100
10 360 45 16,200 775
360
44
45
34,100
16,200
12 600 44 26,400 175
360
44
45
7,700
16,200
14 175
240
44
45
7,700
10,800 120 45 5,400
20 600 48 28,800 120
600
45
48
5,400
28,800
31 120
380
45
48
5,400
18,240 220 48 10,560
31 Balances 68,540