Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data fo
ID: 2560433 • 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 64 units @ $95 10 Sale 44 units 15 Purchase 77 units @ $100 20 Sale 45 units 24 Sale 12 units 30 Purchase 22 units @ $105 Schedule of Cost of Merchandise Sold LIFO Method Portable Game Players Date PurahttyUnit Purchases Unit Purchases Total Quaity Cost of Merchandise Sold Cost of Merchandise Sold Inventory Inventory Unit Inventory Total Purchased Cost Cost Sold Unit Cost Total Cost Cost Cost Apr. Apr. 10 Apr. Apr. 20 Apr 24 Apr. Apr Balance 30Explanation / Answer
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.
20
77
95
100
1900
7700
45
100
4500
20
32
95
100
1900
3200
20
20
95
100
1900
2000
20
20
22
95
100
105
1900
2000
2310
ate quantity purchase unit cost purchase cost quantity sold unit cost cost of goods sold inventory on hand unit cost Inventory cost apr 1 64 95 6080 apr 10 44 95 4180 20 95 1900 apr 15 77 100 770020
77
95
100
1900
7700
apr 2045
100
4500
20
32
95
100
1900
3200
apr 24 12 100 120020
20
95
100
1900
2000
apr 30 22 105 231020
20
22
95
100
105
1900
2000
2310
Apr 30 Balance 9880 6210Related Questions
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