Question

LIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Number of Units Per Unit Total Apr. 3 Inventory 42 $450 $18,900 8 Purchase 84 540 45,360 11 Sale 56 1,500 84,000 30 Sale 35 1,500 52,500 May 8 Purchase 70 600 42,000 10 Sale 42 1,500 63,000 19 Sale 21 1,500 31,500 28 Purchase 70 660 46,200 June 5 Sale 42 1,575 66,150 16 Sale 56 1,575 88,200 21 Purchase 126 720 90,720 28 Sale 63 1,575 99,225

Answer 1

(1)

	Purchases			Cost of merchandise sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Apr-03							42	$450	$18,900
Apr-08	84	$540	$45,360				42	$450	$18,900
							84	$540	$45,360
Apr-11				56	$540	$30,240	42	$450	$18,900
							28	$540	$15,120
Apr-30				28	$540	$15,120	35	$450	$15,750
				7	$450	$3,150
May-08	70	$600	$42,000				35	$450	$15,750
							70	$600	$42,000
May-10				42	$600	$25,200	35	$450	$15,750
							28	$600	$16,800
May-19				21	$600	$12,600	35	$450	$15,750
							7	$600	$4,200
May-28	70	$660	$46,200				35	$450	$15,750
							7	$600	$4,200
							70	$660	$46,200
Jun-05				42	$660	$27,720	35	$450	$15,750
							7	$600	$4,200
							28	$660	$18,480
Jun-16				28	$660	$18,480	14	$450	$6,300
				7	$600	$4,200
				21	$450	$9,450
Jun-21	126	$720	$90,720				14	$450	$6,300
							126	$720	$90,720
Jun-28				63	$720	$45,360	14	$450	$6,300
							63	$720	$45,360
Jun-30	Balances					$191,520			$51,660

(2)

Total Sales	$484,575
Total cost of merchandise sold	$191,520
Gross Profit	$293,055

(3) Inventory Balance = $51660