Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Ite

Question

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item PK95 are as follows: July 1 Inventory 102 units @ $34 5 Sale 82 units 11 Purchase 113 units @ $38 21 Sale 95 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on July 21 and (b) the inventory on July 31. a. Cost of merchandise sold on July 21 $ b. Inventory on July 31 $

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item PK95 are as follows:

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on July 21 and (b) the inventory on July 31.

Explanation / Answer

Calculate following :

a) Cost of merchandise sold on July 21 = 95*38 = 3610

b)  Inventory on July 31 = (18*38+20*34) = 1364

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