Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data fo
ID: 2432839 • Letter: P
Question
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
Apr. 1 Inventory43 units @ $5910 Sale34 units15 Purchase54 units @ $6320 Sale30 units24 Sale8 units30 Purchase24 units @ $66
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.
Explanation / Answer
Cost of Merchanised Sold Schedule
Last in,First- out method
Portable DVD Players
Date
Quantity
purchased
purchase
unit cost
purchase
total cost
quantity
sold
cost
of merchandise sold unit cost
cost
of merchandise sold total cost
inventory
quantity
Inventory unit cost
Inventory
total cost
01-Apr
43
59
2537
10-Apr
34
59
2006
9
59
531
15-Apr
54
63
3402
9
59
531
54
63
3402
20-Apr
30
63
1890
9
59
531
24
63
1512
24-Apr
8
63
504
9
59
531
16
63
1008
30-Apr
24
66
1584
9
59
531
16
63
1008
24
66
1584
30-Apr
balance
4986
4400
3123
Cost of Merchanised Sold Schedule
Last in,First- out method
Portable DVD Players
Date
Quantity
purchased
purchase
unit cost
purchase
total cost
quantity
sold
cost
of merchandise sold unit cost
cost
of merchandise sold total cost
inventory
quantity
Inventory unit cost
Inventory
total cost
01-Apr
43
59
2537
10-Apr
34
59
2006
9
59
531
15-Apr
54
63
3402
9
59
531
54
63
3402
20-Apr
30
63
1890
9
59
531
24
63
1512
24-Apr
8
63
504
9
59
531
16
63
1008
30-Apr
24
66
1584
9
59
531
16
63
1008
24
66
1584
30-Apr
balance
4986
4400
3123
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