Question

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 2,900 units at $25 May 10 1,450 units at $27 May 12 2,030 units May 20 1 ,305 units at $29 May 14 1,740 units May 31 870 units a. Assuming that the perpetual Inventory system is used, costing by the UFO method, determine the cost of merchandise sold for each sale and the inventory balance a each sale, presenting the data in the form illustrated in Exhibit 4. Under UFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost firs 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 Prepaid Cell Phones Quantity Purchases Purchases Quantity Cost of Merchandise Sold Cost of Merchandise Sold Inventory Inventory Inventory Date Purchased Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Unit Cost Total Cost Previous Next > Check thy Work Save and time Asignment for reading

Answer 1

LIFO METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Quantity Purchasd	Purchase unit cost	Purchase Total Cost	Quantity Sold	Cost of merchandise Sold unit cost	Cost of merchandise Sold Total cost	Inventory Qunatity	Inventory unit cost	Inventory Total cost
May, 01	Beginning inventory							2900	$                     25	$72,500
May, 10	Purchase	1450	$                   27	$39,150				2900	$                     25	$72,500
								1450	$                     27	$39,150
May , 12	Sales				1450	$                                     27	$39,150
					580	$                                     25	$14,500	2320	$                     25	$58,000
May , 14	Sales				1740	$                                     25	$43,500	580	$                     25	$14,500
May, 20	Purchase	1305	$                   29	$37,845				580	$                     25	$14,500
								1305	$                     29	$37,845
May , 31	Sales				870	$                                     29	$25,230	580	$                     25	$14,500
								435	$                     29	$12,615
		2,755		$76,995	4,640		$1,22,380	1015		$27,115