Question

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 45 units @ $50 10 Sale 32 units 15 Purchase 60 units @ $53 20 Sale 33 units 24 Sale 10 units 30 Purchase 24 units @ $56 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. Schedule of Cost of Merchandise Sold LIFO Method Portable Game Players 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 Apr. 1 $ $ Apr. 10 $ $ Apr. 15 $ $ Apr. 20 Apr. 24 Apr. 30 Apr. 30 Balance $ $

Answer 1

Solution:

Computation of ending inventory and 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	45	$50.00	$2,250.00	0	$0.00	$0.00	0	$0.00	$0.00	45	$50.00	$2,250.00
10-Apr	45	$50.00	$2,250.00	0	$0.00	$0.00	32	$50.00	$1,600.00	13	$50.00	$650.00
15-Apr	13	$50.00	$650.00	60	$53.00	$3,180.00	0	$0.00	$0.00	13	$50.00	$650.00
										60	$53.00	$3,180.00
20-Apr	13	$50.00	$650.00	0	$0.00	$0.00	33	$53.00	$1,749.00	13	$50.00	$650.00
	60	$53.00	$3,180.00							27	$53.00	$1,431.00
24-Apr	13	$50.00	$650.00	0	$0.00	$0.00	10	$53.00	$530.00	13	$50.00	$650.00
	27	$53.00	$1,431.00							17	$53.00	$901.00
30-Apr	13	$50.00	$650.00	24	$56.00	$1,344.00	0	$0.00	$0.00	13	$50.00	$650.00
	17	$53.00	$901.00							17	$53.00	$901.00
										24	$56.00	$1,344.00
Total							75		$3,879.00	54		$2,895.00