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:

Unit Total Unit Total Unit Total Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost May 11,550 44 68,200 10 720 45 32,4001,550 44 68,200 720 45 32,400 121,200 44 52,800 350 44 15,400 720 45 32,400 14350 44 15,400 480 45 21,600 240 45 10,800 20 1,200 48 57,600240 45 10,800 1,200 48 57,600 31240 45 10,800 760 48 36,480 440 48 21,120

31  Balances137,08021,120