Question

Test 2 Calculator Beginning Inventory, purchases, and sales data for tennis rackets are as follows: ? April 19 units @ $16 3 Inventory 11 Purchase 13 units @ $19 14 Sale 18 units 21 Purchase 9 units @ $22 11 units 25 Sale Complete the inventory cost card assuming the business maintains a perpetual inventory system and determine the cost of goods sold and ending inventory using LIFO. Cost of Goods Sold Purchases Inventory Date Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost April 3 $ 11 $ $ 14 $ $ $ 21 O O $ $ $ 25 $ $ $ $ Total Cost of goods sold $ Ending inventory value $ Previous Next All work saved. Save and Exit Submit Test for Grading

Answer 1

Solution

Inventory

Purchase Cost of goods sold Balance

LIFO Date	Quantity	Purchase Rate	Total Cost	Quantity	Rate	Total Cost	Quantity	Rate	Total Cost
3-April	19	$16	$304				19	$16	$304
11-April	13	$19	$247				19	$16	$304
							13	$19	$247
14-April				13	$19	$247
				5	$16	$80	14	$16	$224
21-April	9	$22	$198				14	$16	$224
							9	$22	$198
25-April				9	$22	$198
				2	$16	$32	12	$16	$192

Cost of goods sold = $247+$80+$198+$32=$557

Ending Inventory= $192

*In LIFO method the units that have purchased last,are released the first one and the ending inventory units remain from the first purchases

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