Question

1. Perpetual Inventory Using LIFO

   Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:

   Inventory		Purchases		Sales
   Dec. 1	3,100 units at $33	Dec. 10	1,550 units at $35	Dec. 12	2,170 units
   		Dec. 20	1,395 units at $37	Dec. 14	1,860 units
   				Dec. 31	930 units

   a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

   Schedule of Cost of Goods Sold
   LIFO Method
   Prepaid Cell Phones
   Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
   Dec. 1								$	$
   Dec. 10		$	$
   Dec. 12					$	$
   Dec. 14
   Dec. 20
   Dec. 31
   Dec. 31	Balances					$			$

Answer 1

Answer)

Calculation of Cost of Goods Sold and Value of ending inventory using LIFO Method, perpetual inventory System

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Dec'1							3,100	$        33.00	$ 102,300.00
Dec'10	1,550	$        35.00	$     54,250.00				3,100	$        33.00	$ 102,300.00
							1,550	$        35.00	$     54,250.00
Dec'12				1,550	$            35.00	$         54,250.00	2,480	$        33.00	$     81,840.00
				620	$            33.00	$         20,460.00
Dec'14				1,860	$            33.00	$         61,380.00	620	$        33.00	$     20,460.00
Dec'20	1,395	$        37.00	$     51,615.00				620	$        33.00	$     20,460.00
							1,395	$        37.00	$     51,615.00
Dec'31				930	$            37.00	$         34,410.00	620	$        33.00	$     20,460.00
							465	$        37.00	$     17,205.00
Total	2,945		$ 105,865.00	4,960		$     170,500.00	1,085		$     37,665.00

Cost of Goods sold = $ 170,500

Value of Ending Inventory = $ 37,665