Question

eBook Show Me How Calculator Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 180 units at $40 10 Sale 140 units 15 Purchase 210 units at $42 20 Sale 170 units 24 Sale 60 units 30 Purchase 240 units at $46 The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of merchandise 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 Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Perpetual Inventory Account LIFO Method Portable Game Players Cost of Cost of Merchandise Merchandise Sold Sold Unit Cost Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost Purchases Purchases Quantity Unit Cost Total Cost Sold Quantity Previous Next Check My Work

Answer 1

Solution:

Perpetual Inventory Accounts

LIFO Method

Portable Games Players

Date	Quantity Purchased	Purchases unit cost	Purchases Total cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Apr. 1							180	$40	$7,200
Apr. 10				140	$40	$5,600	40	$40	$1,600
Apr. 15	210	$42	$8,820				40	$40	$1,600
							210	$42	$8,820
Apr. 20				170	$42	$7,140	40	$40	$1,600
							40	$42	$1,680
Apr. 24				40	$42	$1680	20	$40	$800
				20	$40	$800
Apr. 30	240	$46	$11,040				20	$40	$800
							240	$46	$11,040
Apr. 30	Balance					$15,220			$11,840

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