Question

Perpetual Inventory Using LIFO

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

June 1		Inventory	62 units @ $87
6		Sale	44 units
14		Purchase	75 units @ $92
19		Sale	42 units
25		Sale	11 units
30		Purchase	35 units @ $97

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 5.

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 DVD 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
June 1							62	$87	$5394
June 6					$	$
June 14		$	$
June 19
June 25
June 30
June 30	Balance					$			$

Answer 1

Schedule of Cost of Merchandise Sold
LIFO Method
Portable DVD 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
Jun-01							62	$               87.00	$       5,394.00
Jun-06				44	$            87.00	$        3,828.00	18	$               87.00	$       1,566.00
Jun-14	75	$             92.00	$       6,900.00				18	$               87.00	$       1,566.00
							75	$               92.00	$       6,900.00
Jun-19				42	$            92.00	$        3,864.00	18	$               87.00	$       1,566.00
							33	$               92.00	$       3,036.00
Jun-25				11	$            92.00	$        1,012.00	18	$               87.00	$       1,566.00
							22	$               92.00	$       2,024.00
Jun-30	35	$             97.00	$       3,395.00				18	$               87.00	$       1,566.00
							22	$               92.00	$       2,024.00
							35	$               97.00	$      3,395.00
Jun-30	Balance		$     10,295.00	97		$        8,704.00	75		$       6,985.00