Question

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: July 1 Inventory 82 units $21 8 Sale 66 units 15 Purchase 91 units @ $23 27 Sale 76 units Assuming a perpetual inventory system and using the last-In, first-out (LIFO) method, determine (a) the cost of goods sold on July 27 and (b) the inventory on July 31. a. Cost of goods sold on July 27 b. Inventory on July 31

Answer 1

Cost of goods sold on July 27= $3,102 ...............or 1716 if we take july 27 sale cost of goods sold

Inventory on July 31.= $713

Working

FIFO
	Purchases			Sales			Balance
	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
July 1..							82	$ 21.00	$        1,722.00
July 8..				66	$             21.00	$    1,386.00	16	$ 21.00	$            336.00
July 15..	91	$               23.00	$          2,093.00				16	$ 21.00	$            336.00
							91	$ 23.00	$        2,093.00
July 27..				16	$             21.00	$       336.00
				60	$             23.00	$    1,380.00	31	$ 23.00	$            713.00

Cost of goods sold on july 31 = $1380+336+1386