LIFO Perpetual Inventory The beginning inventory at Midnight Supplies and data o
ID: 2549380 • Letter: L
Question
LIFO Perpetual Inventory
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, 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. 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.
$
of Units Per Unit Total Jan. 1 Inventory 7,500 $75.00 $562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000
Explanation / Answer
purchases cost of merchandise sold Inventory Date Qty unit tota qty unit total qty unit total cost cost cost cost cost cost 1-Jan 7,500 75 562500 10-Jan 22,500 85 1912500 7,500 75 562500 22,500 85 1912500 28-Jan 11,250 85 956250 7,500 75 562500 11250 85 956250 30-Jan 3,750 85 318750 7,500 75 562500 7500 85 637500 5-Feb 1,500 85 127500 7,500 75 562500 6000 85 510000 10-Feb 54,000 87.5 4725000 7,500 75 562500 6000 85 510000 54,000 87.5 4725000 16-Feb 27,000 87.5 229500 7,500 75 562500 6000 85 510000 27,000 87.5 2362500 28-Feb 25,500 87.5 2231250 7,500 75 562500 6000 85 510000 1,500 87.5 2362500 5-Mar 45,000 89.5 4027500 7,500 75 562500 6000 85 510000 1,500 87.5 2362500 45,000 89.5 4027500 14-Mar 30,000 89.5 2685000 7,500 75 562500 6000 85 510000 1,500 87.5 2362500 15,000 89.5 1342500 25-Mar 7,500 90 675000 7,500 75 562500 6000 85 510000 1,500 87.5 2362500 15,000 89.5 1342500 7,500 90 675000 30-Mar 7,500 90 675000 7,500 75 562500 15,000 89.5 1342500 3750 85 318750 1,500 87.5 2362500 2250 85 191250 31-Mar Balances 11119500 881250 2) total sales 19875000 total cost of merchandise sold 11119500 Gross profit from sales 8755500 3) Ending inventory cost as of march 31 881250
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