Question

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales data for portable game players are as follows:

Apr. 1		Inventory	66 units @ $57
10		Sale	44 units
15		Purchase	79 units @ $60
20		Sale	43 units
24		Sale	13 units
30		Purchase	30 units @ $64

The business maintains a perpetual inventory system, costing by the last-in, first-out method.

Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4.

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.

Answer 1

Solution:

Computation of ending inventory COGS under LIFO
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Apr	66	$57.00	$3,762.00	0	$0.00	$0.00	0	$0.00	$0.00	66	$57.00	$3,762.00
10-Apr	66	$57.00	$3,762.00	0	$0.00	$0.00	44	$57.00	$2,508.00	22	$57.00	$1,254.00
15-Apr	22	$57.00	$1,254.00	79	$60.00	$4,740.00	0	$0.00	$0.00	22	$57.00	$1,254.00
										79	$60.00	$4,740.00
20-Apr	22	$57.00	$1,254.00	0	$0.00	$0.00	43	$60.00	$2,580.00	22	$57.00	$1,254.00
	79	$60.00	$4,740.00							36	$60.00	$2,160.00
24-Apr	22	$57.00	$1,254.00	0	$0.00	$0.00	13	$60.00	$780.00	22	$57.00	$1,254.00
	36	$60.00	$2,160.00							23	$60.00	$1,380.00
30-Apr	22	$57.00	$1,254.00	30	$64.00	$1,920.00	0	$0.00	$0.00	22	$57.00	$1,254.00
	23	$60.00	$1,380.00							23	$60.00	$1,380.00
										30	$63.00	$1,890.00
Total							100		$5,868.00	75		$4,524.00