Question

Perpetual Inventory Using LIFO

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

Apr. 1		Inventory	40 units @ $97
10		Sale	30 units
15		Purchase	49 units @ $101
20		Sale	27 units
24		Sale	7 units
30		Purchase	29 units @ $107

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.

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 Cost of Merchandise Sold Cost of Merchandise Sold Unit Cost Total Cost Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Inventory Quantity Inventory Unit Cost Inventory Total Cost Apr. Apr. 10 Apr. Apr. 24 UNI Apr. Balance 30

Answer 1

	Quantity Purchased	Unit cost	Total cost	Quantity sold	Unit cost	Total cost	Inventory Quantity	Unit cost	Total cost
Apr 1							40	97	3880
Apr 10				30	97	2910	10	97	970
Apr 15	49	101	4949				10	97	970
							49	101	4949
Apr 20				27	101	2727	10	97	970
							22	101	2222
Apr 24				7	101	707	10	97	970
							15	101	1515
Apr 30	29	107	3103				10	97	970
							15	101	1515
							29	107	3103
Apr 30	Balance					6344			5588