Question

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item ER27 are as follows: October 1 Inventory 86 units @ $35 5 Sale 69 units 11 Purchase 95 units @ $39 21 Sale 80 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on October 21 and (b) the inventory on October 31. a. Cost of merchandise sold on October 21 $ b. Inventory on October 31 $

Answer 1

LIFO
		Purchased			Issue			Closing
Date		Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
Beginning Inventory								86	$      35.00	$     3,010.00
05-Oct					69	$ 35.00	$ 2,415.00	17	$      35.00	$         595.00
11-Oct		95	$       39.00	$     3,705.00				17	$      35.00	$         595.00
								95	$      39.00	$     3,705.00
21-Oct					80	$ 39	$ 3,120.00	17	$      35.00	$     3,705.00
								15	$      39.00	$         585.00
		95		$     3,705.00	149		$ 5,535.00

1. Cost of merchandise sold= $5,535
2. Ending inventory on 31 oct = $4290 ……(585+3705)