Question

Perpetual Inventory Using LIFO

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

November 1		Inventory	35 units at $86
10		Sale	23 units
15		Purchase	43 units at $90
20		Sale	24 units
24		Sale	7 units
30		Purchase	24 units at $95

The business maintains a perpetual inventory system, costing by the last-in, first-out method.

Determine the cost of goods sold 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

Answer 1

Perpetual LIFO Goods Purchased Cost of Goods sold Ending Inventory Date units Unit Cost Total Cost units Unit Cost Total Cost units Unit Cost Total Cost Nov-01 35 86 3010 Nov-10 23 86 1978 12 86 1032 Nov-15 43 90 3870 12 86 | 1032 43 90 3870 4902 Nov-20 24 90 2160 12 86 10321 90 1710 24 902160 27421 Nov-24 90630 12 86 1032 90 1080 7 630 24 T 21121 Nov-30 24 95 2 280 1032 1080 95 2280 Total 4768 4392 7 12