Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data fo
ID: 2525730 • Letter: P
Question
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
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.
Apr. 1 Inventory 120 units at $26 10 Sale 90 units 15 Purchase 140 units at $28 20 Sale 110 units 24 Sale 40 units 30 Purchase 160 units at $30Explanation / Answer
The business maintains a perpetual inventory system, costing by the last-in, first-out method.
30
140
26
28
780
3920
30
30
26
28
780
840
30
10
28
26
840
260
20
160
26
30
520
4800
Date Quantity purchased purchase unit cost purchase cost Quantity sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory unit Inventory cost per unit Ending inventory Apr 1 120 26 3120 Apr 10 90 26 2340 30 26 780 Apr 15 140 28 392030
140
26
28
780
3920
Apr 20 110 28 308030
30
26
28
780
840
Apr 2430
10
28
26
840
260
20 26 520 apr 30 160 30 480020
160
26
30
520
4800
Apr 30 Balance 6520 5320Related Questions
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