1. FIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
On January 22, the firm sold four units for $31 each.
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
Of the four units sold, three are from the first units in (fifo) at a cost of $20.

2. FIFO Perpetual Inventory Account
Inventory cost data to demonstrate
FIFO and LIFO Perpetual Systems
Cost of
Mdse. Sold
Item 127B Units Cost Price
Jan. 1 Inventory 10 $20
4 Sale 7 $30
10 Purchase 8 21
22 Sale 4 31
28 Sale 2 32
30 Purchase 10 22
On January 28, the firm sold two units at $32.

3. FIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
On January 28, the firm sold two units at $32.

4. FIFO Perpetual Inventory Account
Inventory cost data to demonstrate
FIFO and LIFO Perpetual Systems
Cost of
Mdse. Sold
Item 127B Units Cost Price
Jan. 1 Inventory 10 $20
4 Sale 7 $30
10 Purchase 8 21
22 Sale 4 31
28 Sale 2 32
30 Purchase 10 22
On January 30, purchased ten additional units of Item 127B at $22 each.

5. FIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
On January 30, purchased ten additional units of Item 127B at $22 each.
Totals 18 $ $ $325

6. Lifo
Perpetual

7. LIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
The firm begins the year with 10 units of Item 127B on hand at a total cost of $200.

8. LIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
On January 4, the firm sold 7 units at $30 each.

9. LIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
Note that a new layer is formed.
On January 10, the firm purchased eight units at $21 each.

10. LIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
Of the 4 units sold, all come from the most recent purchase at a cost of $21 each.
On January 22, the firm sells four units at $31 each.

11. LIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
On January 28, sold two units at $32 each.

12. LIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
On January 30, purchase 10 units at $22 each.

13. LIFO Perpetual Inventory Account
Item 127B
Purchases Cost of Mdse. Sold Inventory Balance
Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost
Jan
Totals 18 $ $ $322

14. Fifo Periodic

15. Fifo Periodic Jan. 1 Beginning Inventory 200 units @ $9
Mar. 10 Purchase
400 $11
Sept. 21 Purchase
100 $12
Nov. 18 Purchase
1,000 units available for sale during year

16. Cost of merchandise available for sale
Fifo Periodic
200 $9
= $1,800 Jan. 1
= 3,000 Mar. 10
= 4,400 Sept. 21
= 1,200 Nov. 18
300 $10
400 $11
100 $12
1,000 units available for sale during year
$10,400
Cost of merchandise available for sale

17. Fifo Periodic
A physical count on December 31 reveals that 700 of the 1,000 units have been sold.
Using fifo, the first units purchased are theoretically the first units sold. We begin the count with January 1.

18. Fifo Periodic 200 units @ $9 Sold these 200 = $1,800 Jan. 1
= 0 Mar. 10
= 3,000 Mar. 10
Sold 200 of these
200 $11
400 $11
= 2,200 Sept. 21
= 4,400 Sept. 21
100 $12
= 1,200 Nov. 18
1,000 units available for sale during year
$10,400
$ 3,400
Ending inventory

19. Fifo Periodic Cost of merchandise available for sale $10,400
Less ending inventory 3,400
Cost of merchandise sold $ 7,000

20. Summary of Fifo Periodic
Cost of
Merchandise
Sold
Merchandise
Available
for Sale
Purchases
$1,800
200 units at $9
Jan. 1
200 units at $9
$1,800
$3,000
300 units at $10
Mar. 10
300 units at $10
$3,000
$2,200
200 units at $11
Sep. 21
400 units at $11
$7,000
700 units
$4,400
Merchandise
Inventory
Nov. 18
100 units at $12
$1,200
$2,200
200 units at $11
1,000 units
$10,400
$1,200
100 units at $12
$3,400
300 units

21. Lifo Periodic