In: Accounting
The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows:
Date | Transaction | Number of Units |
Per Unit | Total | ||||
---|---|---|---|---|---|---|---|---|
Apr. 3 | Inventory | 60 | $375 | $22,500 | ||||
8 | Purchase | 120 | 450 | 54,000 | ||||
11 | Sale | 80 | 1,250 | 100,000 | ||||
30 | Sale | 50 | 1,250 | 62,500 | ||||
May 8 | Purchase | 100 | 500 | 50,000 | ||||
10 | Sale | 60 | 1,250 | 75,000 | ||||
19 | Sale | 30 | 1,250 | 37,500 | ||||
28 | Purchase | 100 | 550 | 55,000 | ||||
June 5 | Sale | 60 | 1,315 | 78,900 | ||||
16 | Sale | 80 | 1,315 | 105,200 | ||||
21 | Purchase | 180 | 600 | 108,000 | ||||
28 | Sale | 90 | 1,315 | 118,350 |
Required:
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 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.
Rhodes Co. Perpetual Inventory Account LIFO Method For the three-months ended June 30 |
|||||||||
---|---|---|---|---|---|---|---|---|---|
Purchases | Cost of Merchandise Sold | Inventory | |||||||
Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
Apr. 3 | $ | $ | |||||||
Apr. 8 | $ | $ | |||||||
Apr. 11 | $ | $ | |||||||
Apr. 30 | |||||||||
May 8 | |||||||||
May 10 | |||||||||
May 19 | |||||||||
May 28 | |||||||||
June 5 | |||||||||
June 16 | |||||||||
June 21 | |||||||||
June 28 | |||||||||
June 30 | Balances | $ | $ |
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
Total sales | $ |
Total cost of merchandise sold | |
Gross profit | $ |
3. Determine the ending inventory cost on June
30.
$
Solution: 1 | ||||||||||
Schedule of Cost of Merchandise Sold | ||||||||||
LIFO METHOD | ||||||||||
COST OF GOODS AVAILABLE FOR SALE | COST OF GOODS SOLD | ENDING INVENTORY | ||||||||
Date | Particulars | No. of Units | Cost Per unit | Total | No. of Units | Cost Per unit | Cost of Goods Sold | No. of Units | Cost Per unit | Ending invetory |
Apr.03 | Beginning inventory | 60 | $ 375 | $22,500 | ||||||
Apr.08 | Purchases | 120 | $ 450 | $54,000 | 60 | $ 375 | $22,500 | |||
120 | $ 450 | $54,000 | ||||||||
Apr.11 | Sales | 80 | $ 450 | $36,000 | 40 | $ 450 | $18,000 | |||
60 | $ 375 | $22,500 | ||||||||
Apr.30 | Sales | 40 | $ 450 | $18,000 | ||||||
10 | $ 375 | $3,750 | 50 | $ 375 | $18,750 | |||||
May.08 | Purchases | 100 | $ 500 | $50,000 | 100 | $ 500 | $50,000 | |||
50 | $ 375 | $18,750 | ||||||||
May.10 | Sales | 60 | $ 500 | $30,000 | 40 | $ 500 | $20,000 | |||
50 | $ 375 | $18,750 | ||||||||
May.19 | Sales | 30 | $ 500 | $15,000 | 10 | $ 500 | $5,000 | |||
50 | $ 375 | $18,750 | ||||||||
May.28 | Purchases | 100 | $ 550 | $55,000 | 100 | $ 550 | $55,000 | |||
10 | $ 500 | $5,000 | ||||||||
50 | $ 375 | $18,750 | ||||||||
June.05 | Sales | 60 | $ 550 | $33,000 | 40 | $ 550 | $22,000 | |||
10 | $ 500 | $5,000 | ||||||||
50 | $ 375 | $18,750 | ||||||||
June.16 | Sales | 40 | $ 550 | $22,000 | ||||||
10 | $ 500 | $5,000 | ||||||||
30 | $ 375 | $11,250 | 20 | $ 375 | $7,500 | |||||
June.21 | Purchases | 180 | $ 600 | $108,000 | 180 | $ 600 | $108,000 | |||
20 | $ 375 | $7,500 | ||||||||
June.28 | Sales | 90 | $ 600 | $54,000 | 90 | $ 600 | $54,000 | |||
20 | $ 375 | $7,500 | ||||||||
Total Goods Available For sale | 500 | $267,000 | 450 | $228,000 | 110 | $61,500 | ||||
Solution: 2 | ||||||||||
Sales : | ||||||||||
Apr.11 | $ 100,000 | |||||||||
Apr.30 | $ 62,500 | |||||||||
May.10 | $ 75,000 | |||||||||
May.19 | $ 37,500 |
Related SolutionsThe beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a...The beginning inventory of merchandise at Rhodes Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per
Unit
Total
Apr. 3
Inventory
90
$600
$54,000
8
Purchase
180
720
129,600
11
Sale
120
2,000
240,000
30
Sale
75
2,000
150,000
May 8
Purchase
150
800
120,000
10
Sale
90
2,000
180,000
19
Sale
45
2,000
90,000
28
Purchase
150
880
132,000
June 5
Sale
90
2,100
189,000...
LIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and...LIFO Perpetual Inventory
The beginning inventory of merchandise at Rhodes Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
60
$300
$18,000
8
Purchase
120
360
43,200
11
Sale
80
1,000
80,000
30
Sale
50
1,000
50,000
May 8
Purchase
100
400
40,000
10
Sale
60
1,000
60,000
19
Sale
30
1,000
30,000
28
Purchase
100
440
44,000
June 5
Sale...
LIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and...LIFO Perpetual Inventory
The beginning inventory of merchandise at Rhodes Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
42
$300
$12,600
8
Purchase
84
360
30,240
11
Sale
56
1,000
56,000
30
Sale
35
1,000
35,000
May 8
Purchase
70
400
28,000
10
Sale
42
1,000
42,000
19
Sale
21
1,000
21,000
28
Purchase
70
440
30,800
June 5
Sale...
LIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and...LIFO Perpetual Inventory
The beginning inventory of merchandise at Rhodes Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
60
$300
$18,000
8
Purchase
120
360
43,200
11
Sale
80
1,000
80,000
30
Sale
50
1,000
50,000
May 8
Purchase
100
400
40,000
10
Sale
60
1,000
60,000
19
Sale
30
1,000
30,000
28
Purchase
100
440
44,000
June 5
Sale...
FIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and...FIFO Perpetual Inventory
The beginning inventory of merchandise at Rhodes Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per
Unit
Total
Apr. 3
Inventory
42
$150
$6,300
8
Purchase
84
180
15,120
11
Sale
56
500
28,000
30
Sale
35
500
17,500
May 8
Purchase
70
200
14,000
10
Sale
42
500
21,000
19
Sale
21
500
10,500
28
Purchase
70
220
15,400
June 5
Sale...
LIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and...LIFO Perpetual Inventory
The beginning inventory of merchandise at Rhodes Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
48
$150
$7,200
8
Purchase
96
180
17,280
11
Sale
64
500
32,000
30
Sale
40
500
20,000
May 8
Purchase
80
200
16,000
10
Sale
48
500
24,000
19
Sale
24
500
12,000
28
Purchase
80
220
17,600
June 5
Sale...
The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a...
The beginning inventory of merchandise at Dunne Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
84
$375
$31,500
8
Purchase
168
450
75,600
11
Sale
113
1,250
141,250
30
Sale
71
1,250
88,750
May 8
Purchase
140
500
70,000
10
Sale
84
1,250
105,000
19
Sale
42
1,250
52,500
28
Purchase
140
550
77,000
June 5
Sale
84
1,315
110,460...
The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a...
The beginning inventory of merchandise at Dunne Co. and data on
purchases and sales for a three-month period ending June 30 are as
follows:
Date
Transaction
Number
of Units
Per
Unit
Total
Apr. 3
Inventory
25
$1,200
$30,000
8
Purchase
75
1,240
93,000
11
Sale
40
2,000
80,000
30
Sale
30
2,000
60,000
May 8
Purchase
60
1,260
75,600
10
Sale
50
2,000
100,000
19
Sale
20
2,000
40,000
28
Purchase
80
1,260
100,800
June 5
Sale
40
2,250
90,000...
The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a...The beginning inventory of merchandise at Dunne Co. and data on
purchases and sales for a three-month period ending June 30, 2016,
are as follows:
Date
Transaction
Number of Units
Per Unit
Total
Apr.
3
Inventory
25
$1,200
$30,000
8
Purchase
75
1,240
93,000
11
Sale
40
2,000
80,000
30
Sale
30
2,000
60,000
May
8
Purchase
60
1,260
75,600
10
Sale
50
2,000
100,000
19
Sale
20
2,000
40,000
28
Purchase
80
1,260
100,800
June
5
Sale
40
2,250...
The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a...The beginning
inventory of merchandise at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
72
$225
$16,200
8
Purchase
144
270
38,880
11
Sale
96
750
72,000
30
Sale
60
750
45,000
May 8
Purchase
120
300
36,000
10
Sale
72
750
54,000
19
Sale
36
750
27,000
28
Purchase
120
330
39,600
June 5
Sale
72
790
56,880...
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