3. Perpetual LIFO and Periodic FIFO. Matlock Corporation sells item A as part of
ID: 2515237 • Letter: 3
Question
3. Perpetual LIFO and Periodic FIFO. Matlock Corporation sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2017. Quantities Unit Price Date January 11 January 24 February 8 March 16 June 11 Purchased SoldBalance of Purchase 400 1,700 1,400 840 1,440 $4.65 1,300 $4.90 300 560 600 $5.10 Instructions (a) Compute the ending inventory at June 30 under the perpetual LIFO inventory pricing method. Perpetual inventory schedule ActivitY Units S/Unit Jan 11 Jan. 24 Jan 24 Feb. 8 Feb. 8 March 16 March 16 June 11 Ending Inventory 400 1,300 1,700 300 1,400 560 840 600 1,440 4.65 4.90 Balance Purchased Balance Sold Balance Sold Balance Purchased s 5.10Explanation / Answer
Answer
Activity
Units
$/Unit
Jan-11
Balance
400
4.65
Jan-24
Purchased
1300
4.9
Jan-24
Balance
1700
400 @ 4.65
1300 @ 4.9
Feb-08
Sold
300
4.9
Feb-08
Balance
1400
400 @ 4.65
1000 @ 4.9
Mar-16
Sold
560
4.9
Mar-16
Balance
840
400 @4.65
440 @ 4.9
Jun-11
Purchased
600
5.1
Ending Inventory
1440
400 @ 4.65
440 @ 4.90
600 @ 5.1
Ending Inventory
1440 units
Units from:
Jun 11 Purchase 600 units
at $5.1
$3,060
Jan 24 Purchase 440 units
at $4.9
$2,156
Balance 400 units
at $4.65
$1,860
1440 units
valued at
$7,076
Activity
Units
$/Unit
Jan-11
Balance
400
4.65
Jan-24
Purchased
1300
4.9
Jan-24
Balance
1700
400 @ 4.65
1300 @ 4.9
Feb-08
Sold
300
4.9
Feb-08
Balance
1400
400 @ 4.65
1000 @ 4.9
Mar-16
Sold
560
4.9
Mar-16
Balance
840
400 @4.65
440 @ 4.9
Jun-11
Purchased
600
5.1
Ending Inventory
1440
400 @ 4.65
440 @ 4.90
600 @ 5.1
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