Question

LIFO Perpetual Inventory

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Date		Transaction	Number of Units		Per Unit		Total
Jan. 1		Inventory	7,500		$75.00		$562,500
10		Purchase	22,500		85.00		1,912,500
28		Sale	11,250		150.00		1,687,500
30		Sale	3,750		150.00		562,500
Feb. 5		Sale	1,500		150.00		225,000
10		Purchase	54,000		87.50		4,725,000
16		Sale	27,000		160.00		4,320,000
28		Sale	25,500		160.00		4,080,000
Mar. 5		Purchase	45,000		89.50		4,027,500
14		Sale	30,000		160.00		4,800,000
25		Purchase	7,500		90.00		675,000
30		Sale	26,250		160.00		4,200,000

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 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. Round unit cost to two decimal places, if necessary.

Midnight Supplies Schedule of Cost of Goods Sold LIFO Method For the Three Months Ended March 31
	Purchases			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1								$	$
Jan. 10		$	$
Jan. 28					$	$
Jan. 30
Feb. 5
Feb. 10
Feb. 16
Feb. 28
Mar. 5
Mar. 14
Mar. 25
Mar. 30
Mar. 31	Balances					$			$

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

Total sales	$
Total cost of goods sold	$
Gross profit	$

3. Determine the ending inventory cost as of March 31.
$

Answer 1

Solution:

2.

Total sales = $19,875,000

Cost of goods sold = $11,021,250

Gross profit = $8,853,750

3.

Ending inventory = $881,250

		Purchases	Cost of Goods Sold	Ending Inventory
Date	Transaction	Units	Cost per unit	Total cost	Units	Cost per unit	Total cost	Units	Cost per unit	Total cost
Jan-01	Opening inventory	7,500	75	562500				7,500	75	562500
Jan-10	Purchases	22,500	85	1912500				7,500	75	5,62,500
								22,500	85	19,12,500
Jan-28	sales				11,250	85	956250	7,500	75	5,62,500
								11,250	85	956250
Jan-30	sales				3750	85	318750	7,500	75	5,62,500
								7,500	85	637500
Feb-05	Sales				1500	85	127500	7,500	75	5,62,500
								6,000	85	5,10,000
Feb-10	Purchases	54,000	87.5	4725000				7,500	75	5,62,500
								6,000	85	5,10,000
								54,000	87.5	47,25,000
Feb-16	Sale				27000	87.5	2362500	7,500	75	5,62,500
								6,000	85	5,10,000
								27,000	87.5	2362500
Feb-28	sales				25,500	87.5	2231250	7,500	75	5,62,500
								6,000	85	5,10,000
								1,500	87.5	1,31,250
Mar-05	purchases	45,000	89.5	4027500				7,500	75	5,62,500
								6,000	85	5,10,000
								1,500	87.5	1,31,250
								45,000	89.5	40,27,500
Mar-14	sale				30,000	89.5	2685000	7,500	75	5,62,500
								6,000	85	5,10,000
								1,500	87.5	1,31,250
								15,000	89.5	1342500
Mar-25	purchase	7,500	90	675000				7,500	75	5,62,500
								6,000	85	5,10,000
								1,500	87.5	1,31,250
								15,000	89.5	13,42,500
								7,500	90	6,75,000
Mar-30	sale				7,500	90	6,75,000
					15,000	89.5	13,42,500	7,500	75	5,62,500
					1,500	87.5	1,31,250	3,750	85	318750
					2,250	85	191250
		1,36,500		1,19,02,500	1,25,250		1,10,21,250	11,250		8,81,250

		Units	Per unit	Total
28	sales	11,250	150	1687500
30	sales	3,750	150	562500
Feb-05	sales	1,500	150	225000
16	sales	27,000	160	4320000
28	sales	25,500	160	4080000
14	sales	30,000	160	4800000
30	sales	26,250	160	4200000
			Total sales	19875000

Sales	19875000
Cost of Goods sold	1,10,21,250
Gross profit	88,53,750

9 Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X * Cut AutoSum Calibri 11 A A z Wrap Text General Normal Bad Good Fill- Paste a copy Format Painter B 1 U- A- *Merge & Center Conditional Format as Neutral Formatting Table Calculation Check Cell Insert Delete Format 2 Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Styles Cells W15 fac A B C D E F G H 1 J K L M N O P Q R s T U V w х Y Z 1 2 3 4 5 6 7 8 Date Transaction Jan-01 inventory 10 purchases 28 sales 30 sales Feb-05 sales 10 purchases 16 sales 28 sales Mar-05 purchases 14 sales 25 purchases 30 sales Number of unit per unit 7,500 22,500 11,250 3,750 1,500 54,000 27,000 25,500 45,000 30,000 7,500 26,250 Total cost 75 562500 85 1912500 150 1687500 150 562500 150 225000 87.5 4725000 160 4320000 160 4080000 89.5 4027500 160 4800000 90 675000 160 4200000 9 10 11 12 13 14 15 6,000 O 16 17 18 Units 19 11,250 20 21 22 23 24 25 Purchases Cost of Goods Sold Ending Inventory Date Transaction Units Cost per unitTotal cost Units Cost per unit Total cost Units Cost per unit Total cost Jan-01 Opening inventor 7,500 75 562500 7,500 75 562500 Jan-10 Purchases 22,500 85 1912500 7,500 75 5,62,500 22,500 85 19,12,500 Jan-28 sales 11,250 85 956250 7,500 75 5,62,500 11,250 85 956250 Jan-30 sales 3750 85 318750 7,500 75 5,62,500 7,500 85 637500 Feb-05 Sales 1500 85 127500 7,500 75 5,62,500 6,000 85 5,10,000 Feb-10 Purchases 54,000 87.5 4725000 7,500 75 5,62,500 85 5,10,000 54,000 87.5| 47,25,000 Feb-16 Sale 27000 87.5 2362500 7,500 75 5,62,500 6,000 85 5,10,000 27,000 87.5 2362500 Feb-28 sales 25,500 87.5 2231250 7,500 75 5,62,500 6,000 85 5,10,000 1,500 87.5 1,31,250 Mar-05 purchases 45,000 89.5 4027500 7,500 75 5,62,500 6,000 85 5,10,000 1,500 87.5 1,31,250 45,000 89.5 40,27,500 Mar-14 sale 30,000 89.5 2685000 7,500 75 5,62,500 6,000 85 5,10,000 1,500 87.5 1,31,250 15,000 89.5 Mar-25 purchase 7,500 90 675000 7,500 75 5,62,500 6,000 85 5,10,000 1,500 87.5 1,31,250 15,000 89.5 13,42,500 7,500 90 6,75,000 Mar-30 sale 7,500 901 6,75,000 15,000 89.5 13,42,500 7,500 75 5,62,500 1,500 87.5 1,31,250 3,750 85 318750 2,250 85 191250 1,36,500 1,19,02,500 1,25,250 1,10,21,250 11,250 8,81,250 28 sales 30 sales Feb-05 sales 16 sales 28 sales 14 sales 30 sales Per unit Total 150 1687500 3,750 150 562500 1,500 150 225000 27,000 160 4320000 25,500 160 4080000 30,000 160 4800000 26,250 160 4200000 Total sales 19875000 26 27 28 29 1342500 Sales Cost of Goods sold Gross profit 19875000 1,10.21.250 88,53,750 30 31 32 33 34 36 37 38 39 40 Sheet149 Sheet150 Sheet151 Sheet152 Sheet153 Sheet154 Sheet155 Sheet156 Sheet157 Sheet158 Sheet159 Ready O 80% 1 + Zoom In 1 Type here to search O TT 95% «» ENG 22:46 17-09-2020

Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X * Cut AutoSum Calibri 11 A A z Wrap Text General Normal Bad Good Ea Copy Fill Paste B 1 U- *Merge & Center % Calculation Conditional Format as Neutral Formatting Table Check Cell Insert Delete Format Format Painter 2 Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number F Styles Cells M32 fac А с D E F G H 1 J K L M N 0 P R S 1 2 3 4 Date Transaction Units 36892 Opening inventory 7500 40179 Purchases 22500 5 6 7 46753 sales 8 Date Transaction 36892 inventory 10 Ipurchases 28 sales 30 sales 38384 sales 10 purchases 16 sales 28 sales 38412 purchases 14 sales 25 purchases 30 sales Number of unit per unit 7500 75 22500 85 11250 150 3750 150 1500 150 54000 87.5 27000 160 25500 160 45000 89.5 30000 160 7500 90 26250 160 Total cost =P3*Q3 =P4*04 =P5*Q5 =P6*Q6 =P7*07 =P8*Q8 =P9*Q9 =P10*010 =P11*Q11 =P12*Q12 =P13*013 =P14*Q14 10959 sales 9 10 11 38384 Sales 12 40210 Purchases 54000 13 14 15 16 17 18 42401 Sale 19 46784 sales 20 21 22 Purchases Cost of Goods Sold Ending Inventory Cost per unit Total cost Units Cost per unit Total cost Units Cost per unit Total cost 75 =D4E4 7500 75 =J4*K4 85 =D5E5 =J4 =K4 =L4 =D5 =E5 =F5 11250 =K6 =G7*H7 =J5 =K5 =L5 =J6-G7 I=K6 =J8*K8 3750 =K8 | =G9*H9 1=J7 =K7 1=L7 =J8-G9 =K8 =J10*K10 1500 =K10 =G11*H11 1=19 =K9 =L9 =J10-G11 = 10 =J12*K12 87.5 =D13*E13 =J11 =K11 =L11 =J12 =K12 =L12 =D13 =E13 =F13 27000 =K15 =G16*H16 =J13 =K13 =L13 =J14 I=K14 =L14 =J15-G16 =H16 = 18*K18 25500 =K18 =G19*H19 =J16 =K16 =L16 =J17 =K17 |=L17 =J18-G19 =K18 =J21*K21 89.5 =D22*E22 =J19 =L19 =J20 =K20 1=L20 =J21 =K21 =L21 =D22 =E22 =F22 30000 =K25 =G26*H26 =J22 =K22 =L22 =J23 =K23 =L23 =J24 I=K24 =L24 =J25-G26 I=K25 = 29*K29 90 =D30*E30 =J26 1=K26 =L26 =J27 =K27 =L27 =J28 =K28 =J32*K32 =J29 I=K29 =L29 =D30 =E30 |=F30 =134 =K34 =L34 15000 =K33 =L33 =30 =K30 =L30 I=J32 =K32 =G37*H37 = 31-G38 = 31 =37*K37 1=26250-G35-G35-G37 =K31 =G38*H38 =SUM(F4:F38) =SUM(G4:G38) I=SUM(14:138) = 36+J37 =L36+L37 38412 purchases Units 11250 3750 1500 27000 25500 30000 26250 45000 =K19 28 sales 30 sales 38384 sales 16 sales 28 sales 14 sales 30 sales Per unit Total 150 =P19*019 150 =P20*020 150 =P21*021 160 =P22*Q22 160 I=P23*023 160 I=P24*024 160 =P25*025 Total sales =SUM(R19:R25) 23 24 25 26 41699 sale 27 28 29 Sales =R26 Cost of Goods sold =139 Gross profit =P28-P29 45717 purchase 7500 30 31 32 33 34 11018 sale 36 37 38 39 =SUM(D4:D38) 40 > Sheet149 Sheet150 Sheet151 Sheet152 Sheet153 Sheet154 Sheet155 Sheet156 Sheet157 Sheet158 Sheet159 Ready " 80% U 22:46 1 Type here to search O TT 94% «» ENG 17-09-2020 1