LIFO Perpetual Inventory The beginning inventory of merchandise at Keats Office
ID: 2498797 • Letter: L
Question
LIFO Perpetual Inventory
The beginning inventory of merchandise at Keats Office 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 4, using the last-in, first-out method. If units are in inventory at two different costs, enter the OLDEST units first.
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 May 31, 2014.
$
of Units Per Unit Total March 3 Inventory 84 $150 $12,600 8 Purchase 168 180 30,240 11 Sale 113 500 56,500 30 Sale 71 500 35,500 April 8 Purchase 140 200 28,000 10 Sale 84 500 42,000 19 Sale 42 500 21,000 28 Purchase 140 220 30,800 May 5 Sale 84 525 44,100 16 Sale 112 525 58,800 21 Purchase 252 240 60,480 28 Sale 126 525 66,150
Explanation / Answer
1.Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory
Answer:
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
Answer:
3. Determine the ending inventory cost as of May 31, 2014.
Answer: $34,140 is the cost of ending inventory having 152 units.
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Keats Office Supplies Schedule of Cost of Merchandise Sold LIFO Method For the three months ended May 31, 2014 Purchases Cost of Merchandise Sold Sale value of units sold Inventory Date Quantity Unit Cost ($) Total Cost ($) Quantity Unit Cost ($) Total Cost ($) Selling price per unit ($) Sales value ($) Quantity Unit Cost ($) Total Cost ($) a b c (=a xb) d e f g (=e xf) h i (= e x h) j k l (= j x k) Mar. 3 84 150 12,600.00 Mar. 8 168 180 30,240.00 84 150 12,600.00 168 180 3,240.00 Mar. 11 113 180 20,340.00 500 56,500.00 84 150 12,600.00 55 180 9,900.00 Mar. 30 55 180 9,900.00 500 27,500.00 68 150 10,200.00 16 150 2,400.00 500 8,000.00 Apr. 8 140 200 28,000.00 2,400.00 68 150 10,200.00 - 140 200 28,000.00 Apr. 10 84 140 11,760.00 500 42,000.00 68 150 10,200.00 56 200 11,200.00 Apr. 19 42 200 8,400.00 500 21,000.00 68 150 10,200.00 14 200 2,800.00 Apr. 28 140 220 30,800.00 - 68 150 10,200.00 - 14 200 2,800.00 - 140 220 30,800.00 May-05 84 220 18,480.00 68 150 10,200.00 525 44,100.00 14 200 2,800.00 56 220 12,320.00 May-16 56 220 12,320.00 525 29,400.00 26 150 3,900.00 14 200 2,800.00 525 7,350.00 42 150 6,300.00 525 22,050.00 May-21 252 240 60,480.00 26 150 3,900.00 252 240 60,480.00 May-28 126 525 66,150.00 - 26 150 3,900.00 66,150.00 126 240 30,240.00 May-31 Balances Closing inventory 26 150 3,900.00 126 240 30,240.00 152 Total 34,140.00 Total Amount ($) 158,850.00 326,450.00Related Questions
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