Perpetual inventory using LIFO Show Me How Calculator Perpetual Inventory Using

Question

Perpetual inventory using LIFO Show Me How Calculator Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for July are as follows: Inventory July 1 Purchases July 10 uly 20 3,000 units at $30 1,500 units at $32 1,350 units at $34 July 12 July 14 July 31 2,100 units 1,800 units 900 units a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Total Cost Quantity Unit Cost Total Cost Date Purchased Unit Cost Total Cost Unit Cost $90000 14 K My Work uses r

Explanation / Answer

Schedule of Cost of Merchandise sold

LIFO Method

Prepaid cell Phones

b.

As the prices are rising and as the beginning inventory and earlier purchases are sold first as per First in First out method, it is expected that ending inventory to be higher.

Date Quantity Purchased Purchases unit cost Purchases total cost Quantity sold Cost of merchandise sold unit cost Cost of merchandise sold total cost Inventory quantity Inventory unit cost Inventory total cost July 1 3,000 30 90,000 3,000 30 90,000 July 10 1,500 32 48,000 3,000 30 90,000 1,500 32 48,000 July 12 1,500 32 48,000 2,400 30 72,000 600 30 18,000 July 14 1,800 30 54,000 600 30 18,000 July 20 1,350 34 45,900 600 30 18,000 1,350 34 45,900 July 31 900 34 30,600 600 30 18,000 450 34 15,300 July 31 Balances 4,800 150,600 1,050 33,300

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.