LIFO Perpetual Inventory The beginning inventory at Funky Party Supplies and dat
ID: 2542469 • Letter: L
Question
LIFO Perpetual Inventory
The beginning inventory at Funky Party 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 5, 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. Round unit cost to two decimal places, if necessary.
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 March 31, 2016.
$
of Units Per Unit Total Jan. 1 Inventory 2,500 $60.00 $150,000 10 Purchase 7,500 68.00 510,000 28 Sale 3,750 120.00 450,000 30 Sale 1,250 120.00 150,000 Feb. 5 Sale 500 $120.00 $60,000 10 Purchase 18,000 70.00 1,260,000 16 Sale 9,000 125.00 1,125,000 28 Sale 8,500 125.00 1,062,500 Mar. 5 Purchase 15,000 71.60 1,074,000 14 Sale 10,000 125.00 1,250,000 25 Purchase 2,500 72.00 180,000 30 Sale 8,750 125.00 1,093,750
Explanation / Answer
Calculate cost of goods sold and ending inventory under LIFO perpetual method :
2500
7500
60
68
150000
510000
2500
3750
60
68
150000
255000
85000
2500
2500
60
68
150000
170000
2500
2000
60
68
150000
136000
2500
2000
18000
60
68
70
150000
136000
1260000
2500
2000
9000
60
68
70
150000
136000
630000
2500
2000
500
60
68
70
150000
136000
35000
2500
2000
500
15000
60
68
70
71.60
150000
136000
35000
1074000
2500
2000
500
5000
60
68
70
71.60
150000
136000
35000
358000
2500
2000
500
5000
2500
60
68
70
71.60
72
150000
136000
35000
358000
180000
2500
5000
500
1250
72
71.60
70
68
180000
358000
35000
85000
2500
750
60
68
150000
51000
2) Total sales = 5191250
Cost of merchandise sold = 2973000
Gross profit = 2218250
3) Ending inventory = 201000
Purchase Cost of goods sold Inventory Date Qty Unit cost Total cost Qty unit cost Total cost Qty Unit cost Total cost Jan 1 2500 60 150000 Jan 10 7500 68 5100002500
7500
60
68
150000
510000
Jan 28 3750 68 2550002500
3750
60
68
150000
255000
Jan 30 1250 6885000
2500
2500
60
68
150000
170000
Feb 5 500 68 340002500
2000
60
68
150000
136000
Feb 10 18000 70 12600002500
2000
18000
60
68
70
150000
136000
1260000
Feb 16 9000 70 6300002500
2000
9000
60
68
70
150000
136000
630000
Feb 28 8500 70 5950002500
2000
500
60
68
70
150000
136000
35000
Mar 5 15000 71.60 10740002500
2000
500
15000
60
68
70
71.60
150000
136000
35000
1074000
Mar 14 10000 71.60 7160002500
2000
500
5000
60
68
70
71.60
150000
136000
35000
358000
Mar 25 2500 72 1800002500
2000
500
5000
2500
60
68
70
71.60
72
150000
136000
35000
358000
180000
Mar 302500
5000
500
1250
72
71.60
70
68
180000
358000
35000
85000
2500
750
60
68
150000
51000
Balance 2973000 201000Related Questions
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