Question

Perpetual Inventory Using LIFO

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

Apr. 1		Inventory	120 units at $26
10		Sale	90 units
15		Purchase	140 units at $28
20		Sale	110 units
24		Sale	40 units
30		Purchase	160 units at $30

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	Balances					$			$

Answer 1

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							120	$26	$3,120
Apr. 10				90	$26	$2,340	30	$26	$780
Apr. 15	140	$28	$3,920				30	$26	$780
							140	$28	$3,920
Apr. 20				110	$28	$3,080	30	$26	$780
							30	$28	$840
Apr. 24				30	$28	$840	20	$26	$520
				10	$26	$260
Apr. 30	160	$30	$4,800				20	$26	$520
							160	$30	$4,800
Apr. 30	Balances		$8,720			$6,520	180		$5,320