Question

Requirement 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Inventory on Hand A Data Table Unit Total Total Unit Unit Cost Total Cost Date Quantity Cost Cost Quantity Cost Quantity Cost Jan. 1 Jan. 5 Purchase 13 Sale 18 Purchase 26 Sale 120 crates @ 130 crates @ 124 crates @ 130 crates @ $ $ $ $ 78 each 98 each 90 each 104 each Print Print Done Done 26 Totals Enter any number in the edit fields and then click Check Answer.

Answer 1

Schedule

	Purchase			Cost of goods sold			Ending inventory
Date	Unit	Unit Cost	Total cost	Unit	Unit Cost	Total cost	Unit	Unit Cost	Total Cost
Jan 1							72	50	3600
Jan 5	120	78	9360				72 120	50 78	3600 9360
Jan 13				120 10	78 50	9360 500	62	50	3100
Jan 18	124	90	11160				62 124	50 90	3100 11160
Jan 26				124 6	90 50	11160 300	56	50	2800
Jan 31	244		20520	260		21320	56		2800

Cost of goods sold = 21320 ; Ending inventory = 2800

Gross profit = 26260-21320 = 4940