LIFO Perpetual Inventory The beginning inventory at Funky Party Supplies and dat

Question

LIFO Perpetual Inventory

The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period are as follows:

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the last-in, first-out method. 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. Round unit cost to two decimal places, if necessary.

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost as of March 31, 2016.
$

THANK you so much

Date Transaction Number
of Units Per Unit Total Jan. 1 Inventory 2,500 $60.00 $150,000 10 Purchase 7,500 68.00 510,000 28 Sale 3,750 120.00 450,000 30 Sale 1,250 120.00 150,000 Feb. 5 Sale 500 $120.00 $60,000 10 Purchase 18,000 70.00 1,260,000 16 Sale 9,000 125.00 1,125,000 28 Sale 8,500 125.00 1,062,500 Mar. 5 Purchase 15,000 71.60 1,074,000 14 Sale 10,000 125.00 1,250,000 25 Purchase 2,500 72.00 180,000 30 Sale 8,750 125.00 1,093,750

Explanation / Answer

Total Sales = $51,91,250

Total Cost of Merchandise Sold= $29,39,000

Gross Profit from Sale= = $22,52,250

Ending Inventory Cost is $2,35,000   

Funky Party Supplies Schedule of Cost of Merchandise Sold LIFO Method For the three months ended March 31, 2016 Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total cost Quantity Unit Cost Total cost Quantity Unit Cost Total cost Jan, 1 2500 $60 $150,000 Jan, 10 7500 $68 $510,000 2500 $60 $150,000 7500 $68 $510,000 Jan,28 3750 $68 $255,000 2500 $60 $150,000 3750 $68 $255,000 Jan,30 1250 $68 $85,000 2500 $60 $150,000 2500 $68 $170,000 Feb, 5 500 $68 $34,000 2500 $60 $150,000 2000 $68 $136,000 Feb, 10 18000 $70 $1,260,000 2500 $60 $150,000 2000 $68 $136,000 18000 $70 $1,260,000 Feb, 16 9000 $70 $630,000 2500 $60 $150,000 2000 $68 $136,000 9000 $70 $630,000 Feb, 28 8500 $70 $595,000 2500 $60 $150,000 2000 $68 $136,000 500 $70 $35,000 Mar, 5 15000 $71.60 $1,074,000 2500 $60 $150,000 2000 $68 $136,000 500 $70 $35,000 15000 $71.60 1074000 Mar,14 10000 $71.60 $716,000 2500 $60 $150,000 2000 $68 $136,000 500 $70 $35,000 5000 $71.60 $358,000 Mar,25 2500 $72 $180,000 2500 $60 $150,000 2000 $68 $136,000 500 $70 $35,000 5000 $71.60 $358,000 2500 $72 $180,000 Mar,30 2500 $72 $180,000 2500 $60 $150,000 5000 $71.60 $358,000 1250 $68 $85,000 500 $70 $35,000 750 $68 $51,000 Mar, 31 Balances $2,939,000 3750 $235,000

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