Problem 4 - Perpetual System Complete the following using the Perpetual System A

Question

Problem 4 - Perpetual System Complete the following using the Perpetual System And the FIFO method I have started it with the beginning inventory of 10 units at $10; and the first purchase of 15 units of $12.   Remember to bring any unused inventory down Sales and purchases for the rest of the month are as follows: 6-May Sold 8 units 10-May Purchased 5 units @ 17 20-May Sold 12 units 25-May Sold 3 units Purchases Cost of Merch. Sold Ending Merch. Inventory Date Units Cost Total Units Cost Total Units Cost Total 1-May 10 $       10 $           100 5-May 15 $                12 $               180 10 $       10 $           100 $    $    6-May $    $    $    $    $    $    10-May $ $    $    $    $    $    20-May $    $    25-May Total COMS Total Merch. Inv. Re work the above problem below using LIFO this time. Purchases Cost of Merch. Sold Ending Merch. Inventory Units Cost Total Units Cost Total Units Cost Total 1-May 10 $       10 $           100 5-May 15 $                12 $               180 10 $       10 $           100 15 $       12 $           180 6-May 10-May 20-May 25-May Total COMS Total Merch. Inv. Problem 4 - Perpetual System Complete the following using the Perpetual System And the FIFO method I have started it with the beginning inventory of 10 units at $10; and the first purchase of 15 units of $12.   Remember to bring any unused inventory down Sales and purchases for the rest of the month are as follows: 6-May Sold 8 units 10-May Purchased 5 units @ 17 20-May Sold 12 units 25-May Sold 3 units Purchases Cost of Merch. Sold Ending Merch. Inventory Date Units Cost Total Units Cost Total Units Cost Total 1-May 10 $       10 $           100 5-May 15 $                12 $               180 10 $       10 $           100 $    $    6-May $    $    $    $    $    $    10-May $ $    $    $    $    $    20-May $    $    25-May Total COMS Total Merch. Inv. Re work the above problem below using LIFO this time. Purchases Cost of Merch. Sold Ending Merch. Inventory Units Cost Total Units Cost Total Units Cost Total 1-May 10 $       10 $           100 5-May 15 $                12 $               180 10 $       10 $           100 15 $       12 $           180 6-May 10-May 20-May 25-May Total COMS Total Merch. Inv.

Explanation / Answer

Solution:

Perpetual System and prepared below using FIFO method:

Perpetual System and prepared below using LIFO method:

Purchases Cost of Merch. Sold Ending Merch. Inventory Date Units Cost Total Units Cost Total Units Cost Total 1 May Beginning Inventory 10 10 100 15 12 180 10 10 100 15 12 180 6 May 8 10 80 2 10 20 15 12 180 10 May 5 17 85 2 10 20 15 12 180 5 17 85 20 May 2 10 20 5 12 60 10 12 120 5 17 85 25 May 3 12 36 2 12 24 5 17 85 Total Purchases 265 Total COMS 256 Total Merch. Inv 109

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