Perpetual Inventory Schedule Using FIFO Method

What is the correct sequence of transactions for preparing the perpetual inventory schedule using the FIFO method?

Answer:

The correct sequence of transactions for preparing the perpetual inventory schedule using the FIFO method is d) $756; $810; $500.

Explanation:

To prepare the perpetual inventory schedule using the FIFO (First-In, First-Out) method, we need to arrange the transactions in the order of when the inventory was purchased.

The given transactions are:

a) $1,566; $756; $810

b) $810; $756; $500

c) $600; $756; $810

d) $756; $810; $500

Using the FIFO method, the cost of the first purchase is allocated first, followed by the cost of the second purchase, and so on. Based on this, the correct option is d) $756; $810; $500.

← Maximizing investment a guide to buying options for land purchase Importance of competence under the aicpa code of professional conduct →

More Posts: