Question

Perpetual Inventory Using LIFO

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

Apr. 1		Inventory	49 units @ $52
10		Sale	32 units
15		Purchase	63 units @ $55
20		Sale	36 units
24		Sale	9 units
30		Purchase	24 units @ $58

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	Balance					$			$

Answer 1

Schedule of Cost of Merchandise Sold
LIFO
Portable Game Players
	Purchases			Cost of Merchandise sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
1-Apr							49	52	2548
10				32	52	1664	17	52	884
15	63	55	3465				63	55	3465
							17	52	884
20				36	55	1980	27	55	1485
							17	52	884
24				9	55	495	18	55	990
							17	52	884
30	24	58	1392				18	55	990
							17	52	884
							24	58	1392
30-Apr				77		4139	59		3266