Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows:
November 1 Inventory 120 units at $39
10 Sale 90 units
15 Purchase 140 units at $40
20 Sale 110 units
24 Sale 45 units
30 Purchase 160 units at $43
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
a. Determine the cost of the goods sold for each sale and the inventory balance after each sale.
b. Based on the data would you expect the profit to be higher or lower?