Question

Beginning inventory, purchases, and sales data for tennis rackets are as follows:

Apr.	3		Inventory		12 units @	$45
	11		Purchase		13 units @	$47
	14		Sale		18 units
	21		Purchase		9 units @	$60
	25		Sale		10 units

Complete the subsidiary inventory ledger assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using LIFO.

Cost of Purchases Merchandise Sold Inventory Qty Unit Cost Total Cost Qty Unit Cost Total Cost Qty Unit Cost Total Cost 3 12 45 540 11 13 47 611 12 $ 45 $ 540 13 47 $ 611 14 13 47 611 7 45 315 $ $ $ $ 5 45 225 21 9 60 540 7 45 $ 315 9 60 ta 540 25 9 60 ta 540 6 $ 45 $ 270 1 45 45 Total Cost of merchandise sold $ Ending inventory value

Answer 1

Correct Answer:

Total Cost of Merchandise sold	$    1,421
Ending inventory value	$        270

Working:

Perpetual LIFO
Date	Goods Purchased			Cost of Goods Sold			Inventory Balance
	# of Units	Cost Per Unit	Cost of Goods Available for sale	# of Units Sold	Cost per Unit	Cost of Goods Sold	# of Units	Cost per Unit	Inventory Balance
3-Apr			$               -			$               -	12	$          45	$        540
			$               -			$               -			$           -
11-Apr	13	$          47	$     611.00			$               -	12	$          45	$        540
			$               -			$               -	13	$          47	$        611
			$               -			$               -			$           -
14-Apr			$               -	13	$          47	$           611	7	$          45	$        315
			$               -	5	$          45	$           225			$           -
			$               -			$               -			$           -
21-Apr	9	$          60	$           540			$               -	7	$          45	$        315
			$               -			$               -	9	$          60	$        540
			$               -			$               -			$           -
25-Apr			$               -	9	$          60	$     540.00	6	$          45	$        270
			$               -	1	$          45	$        45.00			$           -
			$               -			$               -			$           -
			$               -	28		$        1,421	6		$        270

End of Answer.

Please give a thumbs-up, it will be highly appreciated.

Thanks