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Received Date No. of Units Unit Cost Issued, No. of Units Balance, No. of Units

ID: 2574188 • Letter: R

Question

Received

Date

No. of Units

Unit Cost

Issued,
No. of Units

Balance,
No. of Units

1. From these data compute the ending inventory on each of the following base. Assume that perpetual inventory records are kept in units only. (1) Last-in, first-out (LIFO).

NOTE: I keep getting $5194 but that is NOT the answer. Could someone show me how to get the right answer? It is not $5194. This is using LIFO.

Some of the information found on a detail inventory card for Sage Inc. for the first month of operations is as follows.

Received

Date

No. of Units

Unit Cost

Issued,
No. of Units

Balance,
No. of Units

January 2 1,600 $4.65 1,600 7 1,100 500 10 1,000 4.96 1,500 13 900 600 18 1,400 5.12 700 1,300 20 1,100 200 23 1,700 5.27 1,900 26 1,200 700 28 2,000 5.43 2,700 31 1,700 1,000

Explanation / Answer

Solution:

Answer is coming $5,194

Perpetual LIFO

Goods Purchased

Issued Units

Inventory Balance

# of units

Unit Cost

Cost per unit

# of units

Cost per unit

Value

# of units

Cost per unit

Inventory Balance

Jan.2 Inventory

1600

$4.65

$7,440

Jan. 7 Issued

1100

$4.65

$5,115

500

$4.65

$2,325

Jan.10 Received

1000

$4.96

$4,960.00

500

$4.65

$2,325

1000

$4.96

$4,960

1500

$7,285

Jan.13 Issued

900

$4.96

$4,464

500

$4.65

$2,325

100

$4.96

$496

600

$2,821

Jan.18 Received

1400

$5.12

$7,168.00

700

$5.12

$3,584

500

$4.65

$2,325

100

$4.96

$496

700

$5.12

$3,584

1300

$6,405

Jan.20 Issued

700

$5.12

$3,584

200

$4.65

$930

100

$4.96

$496

0

$4.96

$0

300

$4.65

$1,395

0

$5.12

$0

200

$930

Jan.23 Received

1700

$5.27

$8,959.00

200

$4.65

$930

1700

$5.27

$8,959

1900

$9,889

Jan.26 Issued

1200

$5.27

$6,324

200

$4.65

$930

500

$5.27

$2,635

700

$3,565

Jan.28 Received

2000

$5.43

$10,860

200

$4.65

$930

500

$5.27

$2,635

2000

$5.43

$10,860

2700

$14,425

Jan.31 Issued

1700

$5.43

$9,231

200

$4.65

$930

500

$5.27

$2,635

300

$5.43

$1,629

1000

$5,194

Alternatively…if it is assumed that Jan.18 Issued units are from the units in inventory and the balance 100 Units are issued from the newest purchase..then the answer may be different..here is the same

Perpetual LIFO

Goods Purchased

Issued Units

Inventory Balance

# of units

Unit Cost

Cost per unit

# of units

Cost per unit

Value

# of units

Cost per unit

Inventory Balance

Jan.2 Inventory

1600

$4.65

$7,440

Jan. 7 Issued

1100

$4.65

$5,115

500

$4.65

$2,325

Jan.10 Received

1000

$4.96

$4,960.00

500

$4.65

$2,325

1000

$4.96

$4,960

1500

$7,285

Jan.13 Issued

900

$4.96

$4,464

500

$4.65

$2,325

100

$4.96

$496

600

$2,821

Jan.18 Received

1400

$5.12

$7,168.00

500

$4.65

$2,325

0

$4.65

$0

100

$4.96

$496

0

$4.96

$0

100

$5.12

$512

1300

$5.12

$6,656

1300

$6,656

Jan.20 Issued

1100

$5.12

$5,632

200

$5.12

$1,024

Jan.23 Received

1700

$5.27

$8,959.00

200

$5.12

$1,024

1700

$5.27

$8,959

1900

$9,983

Jan.26 Issued

1200

$5.27

$6,324

200

$5.12

$1,024

500

$5.27

$2,635

700

$3,659

Jan.28 Received

2000

$5.43

$10,860

200

$5.12

$1,024

500

$5.27

$2,635

2000

$5.43

$10,860

2700

$14,519

Jan.31 Issued

1700

$5.43

$9,231

200

$5.12

$1,024

500

$5.27

$2,635

300

$5.43

$1,629

1000

$5,288

Ending Inventory is $5,288

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Perpetual LIFO

Goods Purchased

Issued Units

Inventory Balance

# of units

Unit Cost

Cost per unit

# of units

Cost per unit

Value

# of units

Cost per unit

Inventory Balance

Jan.2 Inventory

1600

$4.65

$7,440

Jan. 7 Issued

1100

$4.65

$5,115

500

$4.65

$2,325

Jan.10 Received

1000

$4.96

$4,960.00

500

$4.65

$2,325

1000

$4.96

$4,960

1500

$7,285

Jan.13 Issued

900

$4.96

$4,464

500

$4.65

$2,325

100

$4.96

$496

600

$2,821

Jan.18 Received

1400

$5.12

$7,168.00

700

$5.12

$3,584

500

$4.65

$2,325

100

$4.96

$496

700

$5.12

$3,584

1300

$6,405

Jan.20 Issued

700

$5.12

$3,584

200

$4.65

$930

100

$4.96

$496

0

$4.96

$0

300

$4.65

$1,395

0

$5.12

$0

200

$930

Jan.23 Received

1700

$5.27

$8,959.00

200

$4.65

$930

1700

$5.27

$8,959

1900

$9,889

Jan.26 Issued

1200

$5.27

$6,324

200

$4.65

$930

500

$5.27

$2,635

700

$3,565

Jan.28 Received

2000

$5.43

$10,860

200

$4.65

$930

500

$5.27

$2,635

2000

$5.43

$10,860

2700

$14,425

Jan.31 Issued

1700

$5.43

$9,231

200

$4.65

$930

500

$5.27

$2,635

300

$5.43

$1,629

1000

$5,194