Question

In: Accounting

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable game players are as...

Perpetual Inventory Using LIFO

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

Apr. 1 Inventory 56 units @ $98
10 Sale 43 units
15 Purchase 73 units @ $104
20 Sale 42 units
24 Sale 11 units
30 Purchase 28 units @ $110

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 $ $

Solutions

Expert Solution

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 56 $98 $5488
Apr. 10 43 $98 $4214
Apr. 15 73 $104 $7592 13 98 1274
73 104 7592
Apr. 20 42 104 4368 13 98 1274
31 104 3224
Apr. 24 11 104 1144 13 98 1274
20 104 2080
Apr. 30 28 110 3080 13 98 1274
20 104 2080
28 110 3080
Apr. 30 Balance $9726 $6434

Cost of merchandise sold = $9726

Ending inventory = $6434


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