Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data fo
ID: 2510557 • Letter: P
Question
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
November 1 Inventory 42 units at $99 10 Sale 33 units 15 Purchase 54 units at $105 20 Sale 31 units 24 Sale 9 units 30 Purchase 33 units at $111Explanation / Answer
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,
9
54
99
105
891
5670
9
23
99
105
891
2415
9
14
99
105
891
1470
9
14
33
99
105
111
891
1470
3663
Date Quantity Purchased Purchase unit cost Purchase total cost Quantity sold Cost of Goods Sold Unit Cost Cost of goods sold total cost Inventory quantity Inventory Unit Cost Inventory total Cost Nov 1 42 99 4158 Nov 10 33 99 3267 9 99 891 Nov 15 54 105 56709
54
99
105
891
5670
Nov 20 31 105 32559
23
99
105
891
2415
Nov 24 9 105 9459
14
99
105
891
1470
Nov 30 33 111 36639
14
33
99
105
111
891
1470
3663
Nov 30 Balances 7467 6024Related Questions
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