Beginning Inventory on July 1st, 2014 300 units @ $1.00 Purchase on July 4th, 20
ID: 2426361 • Letter: B
Question
Beginning Inventory on July 1st, 2014
300 units @ $1.00
Purchase on July 4th, 2014
1,000 units @ $1.10
Sales on July 9th, 2014
1,250 units @ $2.00
Purchase on July 15th, 2014
500 units @ $1.16
Sales on July 19th, 2014
450 units @ $2.00
23. Ending Inventory determined using perpetual LIFO would be
Beginning Inventory on July 1st, 2014
300 units @ $1.00
Purchase on July 4th, 2014
1,000 units @ $1.10
Sales on July 9th, 2014
1,250 units @ $2.00
Purchase on July 15th, 2014
500 units @ $1.16
Sales on July 19th, 2014
450 units @ $2.00
Explanation / Answer
Calculation of Ending inventorydetermined using perpetual LIFO would be as follows:
Date Details Units Rate Amount July 1,2014 Beginning inventory 300 $ 1.00 July 4,
2014 Purchase 1,000 $ 1.10 Balance units 1,300 July 5,
2014 Sales 1,000 $ 1.10 July 5,
2014 Sales 250 $ 1.00 Balance units 50 $ 1.00 July 15,
2014 Purchase 500 $ 1.16 July 19,
2014 Sales 450 $ 1.16 Ending inventory: 50 units @$1.16 $ 58 50 units @$1.00 $ 50 Value of ending inventory $ 108
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