Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data fo
ID: 2411098 • Letter: P
Question
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
The business maintains a perpetual inventory system, costing by the last-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 4.
Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
Apr. 1 Inventory 79 units @ $84 10 Sale 53 units 15 Purchase 105 units @ $89 20 Sale 58 units 24 Sale 18 units 30 Purchase 29 units @ $93Explanation / Answer
Schedule of cost of goods sold
LIFO method :
26
105
84
89
2184
9345
26
47
84
89
2184
4183
26
29
84
89
2184
2581
26
29
29
84
89
93
2184
2581
2697
Date Quantity Purchased Purchases unit cost Purchases total cost Quantity sold Purchases unit cost Cost of Merchandise Sold Total Cost Inventory unit Unit cost Inventory Total Cost Apr 1 79 84 6636 Apr 10 53 84 4452 26 84 2184 Apr 15 105 89 934526
105
84
89
2184
9345
Apr 20 58 89 516226
47
84
89
2184
4183
APr 24 18 89 160226
29
84
89
2184
2581
APr 30 29 93 269726
29
29
84
89
93
2184
2581
2697
Total 11216 7462Related Questions
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