The beginning inventory of merchandise at Keats Office Supplies and data on purc

Question

The beginning inventory of merchandise at Keats Office Supplies and data on purchases and sales for a three-month period are as follows:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record , using the last-in, first-out method. 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.

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost as of May 31, 2016.
$___

Date Transaction Number
of Units Per Unit Total March 3 Inventory 78 $450 $35,100 8 Purchase 156 540 84,240 11 Sale 105 1,500 157,500 30 Sale 66 1,500 99,000 April 8 Purchase 130 600 78,000 10 Sale 78 1,500 117,000 19 Sale 39 1,500 58,500 28 Purchase 130 660 85,800 May 5 Sale 78 1,575 122,850 16 Sale 104 1,575 163,800 21 Purchase 234 720 168,480 28 Sale 117 1,575 184,275

Explanation / Answer

1 Date Purchases Cost of Merchandise Sold Inventory Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 03-Mar               78             450 $35,100 08-Mar                     156                    540 $84,240               78             450 $35,100             156             540 $84,240 11-Mar              105              540 $56,700               78             450 $35,100               51             540 $27,540 30-Mar                51              540 $27,540               63             450 $28,350                15              450 $6,750 08-Apr                     130                    600 $78,000               63             450 $28,350             130             600 $78,000 10-Apr                78              600 $46,800               63             450 $28,350               52             600 $31,200 19-Apr                39              600 $23,400               63             450 $28,350               13             600 $7,800 28-Apr                     130                    660 $85,800               63             450 $28,350               13             600 $7,800             130             660 $85,800 05-May                78              660 $51,480               63             450 $28,350               13             600 $7,800               52             660 $34,320 16-May                52              660 $34,320               39             450 $17,550                52              600 $31,200 21-May                     234                    720 $168,480               39             450 $17,550             234             720 $168,480 28-May              117              720 $84,240               39             450 $17,550             117             720 $84,240 $362,430 2 Total Sales : $ 902,925.00 Total COGS : $ 362,430.00 Gross profit from sales : $ 540,495.00 3 Ending Inventory Cost : $ 101,790.00

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