Beginning inventory, purchases, and sales data for prepaid cell phones for Decem

Question

Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows Inventory Dec. 1 Purchases Dec. 10 Dec. 20 Sales Dec. 12 Dec. 14 Dec. 31 2,730 units 2,340 units 1,170 units 3,900 units at $31 1,950 units at $33 1,755 units at $35 a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column Schedule of Cost of Goods Sold LIFO Method Prepaid Cell Phones Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Dec. 1 3,900 31 120,900 3,90031 V Dec. 10 1.950V 64,350 120.900 1,950 v 64,350 | Dec. 12 1,950 64,350 3,865 X 31 119,815) 35 X 2,815X Dec. 14 2,340 72,540 Dec. 201,755V 35 61,425 v 31 Dec. 31 1,170 V 31 X 36,270 X Dec. 31 Balances

Explanation / Answer

Schedule of cost of goods sold:

3900

1950

31

33

120900

64350

1950

780

33

31

64350

24180

780

1755

31

35

24180

61425

780

585

31

35

24180

20475

Date quantity purchased Purchase unit cost Purchase total cost Quantity sold Cost of goods sold per unit Cost of goods sold total cost Inventory quantity Inventory unit cost Inventory total cost Dec 1 3900 31 120900 Dec 10 1950 33 64350

3900

1950

31

33

120900

64350

Dec 12

1950

780

33

31

64350

24180

3120 31 96720 Dec 14 2340 31 72540 780 31 24180 Dec 20 1755 35 61425

780

1755

31

35

24180

61425

Dec 31 1170 35 40950

780

585

31

35

24180

20475

Dec 31 Balance 202020 44655

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