Received Date No. of Units Unit Cost Issued, No. of Units Balance, No. of Units
ID: 2574188 • Letter: R
Question
Received
Date
No. of Units
Unit Cost
Issued,
No. of Units
Balance,
No. of Units
1. From these data compute the ending inventory on each of the following base. Assume that perpetual inventory records are kept in units only. (1) Last-in, first-out (LIFO).
NOTE: I keep getting $5194 but that is NOT the answer. Could someone show me how to get the right answer? It is not $5194. This is using LIFO.
Some of the information found on a detail inventory card for Sage Inc. for the first month of operations is as follows.Received
Date
No. of Units
Unit Cost
Issued,
No. of Units
Balance,
No. of Units
Explanation / Answer
Solution:
Answer is coming $5,194
Perpetual LIFO
Goods Purchased
Issued Units
Inventory Balance
# of units
Unit Cost
Cost per unit
# of units
Cost per unit
Value
# of units
Cost per unit
Inventory Balance
Jan.2 Inventory
1600
$4.65
$7,440
Jan. 7 Issued
1100
$4.65
$5,115
500
$4.65
$2,325
Jan.10 Received
1000
$4.96
$4,960.00
500
$4.65
$2,325
1000
$4.96
$4,960
1500
$7,285
Jan.13 Issued
900
$4.96
$4,464
500
$4.65
$2,325
100
$4.96
$496
600
$2,821
Jan.18 Received
1400
$5.12
$7,168.00
700
$5.12
$3,584
500
$4.65
$2,325
100
$4.96
$496
700
$5.12
$3,584
1300
$6,405
Jan.20 Issued
700
$5.12
$3,584
200
$4.65
$930
100
$4.96
$496
0
$4.96
$0
300
$4.65
$1,395
0
$5.12
$0
200
$930
Jan.23 Received
1700
$5.27
$8,959.00
200
$4.65
$930
1700
$5.27
$8,959
1900
$9,889
Jan.26 Issued
1200
$5.27
$6,324
200
$4.65
$930
500
$5.27
$2,635
700
$3,565
Jan.28 Received
2000
$5.43
$10,860
200
$4.65
$930
500
$5.27
$2,635
2000
$5.43
$10,860
2700
$14,425
Jan.31 Issued
1700
$5.43
$9,231
200
$4.65
$930
500
$5.27
$2,635
300
$5.43
$1,629
1000
$5,194
Alternatively…if it is assumed that Jan.18 Issued units are from the units in inventory and the balance 100 Units are issued from the newest purchase..then the answer may be different..here is the same
Perpetual LIFO
Goods Purchased
Issued Units
Inventory Balance
# of units
Unit Cost
Cost per unit
# of units
Cost per unit
Value
# of units
Cost per unit
Inventory Balance
Jan.2 Inventory
1600
$4.65
$7,440
Jan. 7 Issued
1100
$4.65
$5,115
500
$4.65
$2,325
Jan.10 Received
1000
$4.96
$4,960.00
500
$4.65
$2,325
1000
$4.96
$4,960
1500
$7,285
Jan.13 Issued
900
$4.96
$4,464
500
$4.65
$2,325
100
$4.96
$496
600
$2,821
Jan.18 Received
1400
$5.12
$7,168.00
500
$4.65
$2,325
0
$4.65
$0
100
$4.96
$496
0
$4.96
$0
100
$5.12
$512
1300
$5.12
$6,656
1300
$6,656
Jan.20 Issued
1100
$5.12
$5,632
200
$5.12
$1,024
Jan.23 Received
1700
$5.27
$8,959.00
200
$5.12
$1,024
1700
$5.27
$8,959
1900
$9,983
Jan.26 Issued
1200
$5.27
$6,324
200
$5.12
$1,024
500
$5.27
$2,635
700
$3,659
Jan.28 Received
2000
$5.43
$10,860
200
$5.12
$1,024
500
$5.27
$2,635
2000
$5.43
$10,860
2700
$14,519
Jan.31 Issued
1700
$5.43
$9,231
200
$5.12
$1,024
500
$5.27
$2,635
300
$5.43
$1,629
1000
$5,288
Ending Inventory is $5,288
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Perpetual LIFO
Goods Purchased
Issued Units
Inventory Balance
# of units
Unit Cost
Cost per unit
# of units
Cost per unit
Value
# of units
Cost per unit
Inventory Balance
Jan.2 Inventory
1600
$4.65
$7,440
Jan. 7 Issued
1100
$4.65
$5,115
500
$4.65
$2,325
Jan.10 Received
1000
$4.96
$4,960.00
500
$4.65
$2,325
1000
$4.96
$4,960
1500
$7,285
Jan.13 Issued
900
$4.96
$4,464
500
$4.65
$2,325
100
$4.96
$496
600
$2,821
Jan.18 Received
1400
$5.12
$7,168.00
700
$5.12
$3,584
500
$4.65
$2,325
100
$4.96
$496
700
$5.12
$3,584
1300
$6,405
Jan.20 Issued
700
$5.12
$3,584
200
$4.65
$930
100
$4.96
$496
0
$4.96
$0
300
$4.65
$1,395
0
$5.12
$0
200
$930
Jan.23 Received
1700
$5.27
$8,959.00
200
$4.65
$930
1700
$5.27
$8,959
1900
$9,889
Jan.26 Issued
1200
$5.27
$6,324
200
$4.65
$930
500
$5.27
$2,635
700
$3,565
Jan.28 Received
2000
$5.43
$10,860
200
$4.65
$930
500
$5.27
$2,635
2000
$5.43
$10,860
2700
$14,425
Jan.31 Issued
1700
$5.43
$9,231
200
$4.65
$930
500
$5.27
$2,635
300
$5.43
$1,629
1000
$5,194
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