LIFO Perpetual Inventory The beginning inventory of merchandise at Keats Office
ID: 2463543 • Letter: L
Question
LIFO Perpetual Inventory
The beginning inventory of merchandise at Keats Office Supplies and data on purchases and sales for a three-month period are as follows:
Required:
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, 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.
$
of Units Per Unit Total March 3 Inventory 42 $450 $18,900 8 Purchase 84 540 45,360 11 Sale 56 1,500 84,000 30 Sale 35 1,500 52,500 April 8 Purchase 70 600 42,000 10 Sale 42 1,500 63,000 19 Sale 21 1,500 31,500 28 Purchase 70 660 46,200 May 5 Sale 42 1,575 66,150 16 Sale 56 1,575 88,200 21 Purchase 126 720 90,720 28 Sale 63 1,575 99,225
Explanation / Answer
2)
3) Cost of the ending inventory ( as per 1st part ) = 51,600
Keats Office Supplies Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Mar-03 - - - - - - 42.00 450.00 18,900.00 Mar-08 84.00 540.00 45,360.00 - - - 42.00 450.00 18,900.00 84.00 540.00 45,360.00 Mar-11 - - - 56.00 540.00 30,240.00 42.00 450.00 18,900.00 28.00 540.00 15,120.00 Mar-30 - - - 28.00 540.00 15,120.00 35.00 450.00 15,750.00 7.00 450.00 3,150.00 Apr-08 70.00 600.00 42,000.00 - - - 35.00 450.00 15,750.00 70.00 600.00 42,000.00 Apr-10 - - - 42.00 600.00 25,200.00 35.00 450.00 15,750.00 28.00 600.00 16,800.00 Apr-19 - - - 21.00 600.00 12,600.00 35.00 450.00 15,750.00 7.00 600.00 4,200.00 Apr-28 70.00 660.00 46,200.00 - - - 35.00 450.00 15,750.00 7.00 600.00 4,200.00 70.00 660.00 46,200.00 May-05 - - - 42.00 660.00 27,720.00 35.00 450.00 15,750.00 7.00 600.00 4,200.00 28.00 660.00 18,480.00 May-16 28.00 660.00 18,480.00 14.00 450.00 6,300.00 7.00 600.00 4,200.00 21.00 450.00 9,450.00 May-21 126.00 720.00 90,720.00 - - - 14.00 450.00 6,300.00 126.00 720.00 90,720.00 May-28 63.00 720.00 45,360.00 14.00 450.00 6,300.00 63.00 720.00 45,360.00 May-31 14.00 450.00 6,300.00 63.00 720.00 45,360.00 Total 2,24,280.00 1,91,520.00 51,660.00Related Questions
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