Question

Beginning inventory, purchases, and sales data for DVD players are as follows: November Inventory 44 units at $53 10 Sale 36 units 15 Purchase 54 units at $55 20 Sale 31 units 24 Sale 9 units 30 Purchase 28 units at $57 The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of goods sold 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column Schedule of Cost of Goods Sold LIFO Method DVD Players Cost of Cost of Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Unit Cost Total Cost Inventory Inventory Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Date Nov. 1 Nov. 10 Nov. 15

Answer 1

	Purchases			Cost of goods sold			Ending inventory
Date	Units	Unit cost	Total cost	Units	Unit cost	Total cost	Units	Unit cost	Total cost
Nov. 1							44	53	2,332
Nov. 10				36	53	1,908	8	53	424
Nov. 15	54	55	2,970				8	53	424
							54	55	2,970
Nov. 20				31	55	1,705	8	53	424
							23	55	1,265
Nov. 24				9	55	495	8	53	424
							14	55	770
Nov. 30	28	57	1,596				8	53	424
							14	55	770
							28	57	1,596
Nov. 30	Balance					$4,108			$2,790

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