Question

Beginning inventory, purchases, and sales data for tennis rackets are as follows: April 3 Inventory 19 units $12 11 Purchase 16 units @ $14 14 Sale 20 units 21 Purchase 14 units $20 25 Sale 16 units Complete the inventory cost card assuming the business maintains a perpetual inventory system and determine the cost of goods sold and ending inventory using LIFO. Purchases Cost of Goods Sold Unit Cost Inventory Qty. Unit Cost Total Cost Q ty. Total Cost Qty. Unit Cost Total Cost Date April 3 Previous Actindows

Answer 1

Ans.	LIFO	Purchase			Cost of goods sold			Balance
	Date	Quantity	Rate	Total cost	Quantity	Rate	Total cost	Quantity	Rate	Total cost
	3-Apr	19	$12.00	$228				19	$12.00	$228
	11-Apr	16	$14.00	$224				19	$12.00	$228
								16	$14.00	$224
	14-Apr				16	$14.00	$224
					4	$12.00	$48	15	$12.00	$180
	21-Apr	14	$20.00	$280				15	$12.00	$180
								14	$20.00	$280
	25-Apr				14	$20.00	$280
					2	$12.00	$24	13	$12.00	$156
	Total				Cost of goods sold		$576	Ending inventory		$156
	*In LIFO method the units that have purchased last, are released the first one and the ending inventory
	units remain from the first purchases.