Question

Given the owing toy activity what h Q g method? (Round my w a y calculations to the newest cant and your final wrth dolar) igieny using the perpetua UFO o U Cast 57.00 SEO Beginning lance September 17 September 24 September 29 Purchase Sale Purchases 60 $5.00 OA 35 OB 100 OC 215 OD 155 units 57.00 and 70 unise 450 and 60 55.00 S 00S 450 and 60 units @ $500 55.70 55.57 and 50 units @ $5.00

Answer 1

Under perpetual LIFO costing method, it is assumed that the goods purchased last are sold first. Therefore cost of ending inventory would be equal to cost of goods purchased first. Also under perpetual method, the cost of goods sold is recognized at the time of sale.

Therefore 15 units sold on Sept 24 would be from goods purchased on Sept 17 at $4.50 per unit. The remaining units from the goods purchased on Sept. 17 will be 55 units (i.e. 70 units - 15 units sold on Sept 24).

Hence ending inventory after sale on Sept 24 will be 100 units @ $7.00, 55 units @ $4.50 and 60 units @ $5.00.

Therefore the correct option is B) 100 units @ $7.00, 55 units @ $4.50 and 60 units @ $5.00.