Question

Complete the following table using the perpetual LIFO method of inventory flow:

	Purchases				Cost of Goods Sold				Inventory
Date	Qty.	Unit Cost	Total Cost		Qty.	Unit Cost	Total Cost		Qty.	Unit Cost	Total Cost
July 2	600	$12.00	$							$	$
										$	$
5	200	$13.00	$							$	$
					200	$	$
7					100	$	$			$	$
										$	$
10	325	$14.00	$							$	$
					325	$	$
12					125	$	$			$	$
										$	$
18	250	$13.00	$							$	$
22					250	$	$
					5	$	$			$	$
25					300	$	$			$	$
										$	$
28	330	$15.00	$							$	$
										$	$
31					75	$	$			$	$
31	Bal.						$				$

Answer 1

Under LIFO Method , stock out is considered to be from the latest stock received. So in Inventory, old stock will be lying
In this problem, there are certain days on which both stock in and stock out is there. In such cases , we can assume that sale is happened after the purchase or purchase happened after the sale.So this problem is solved under both the assumptions in convenience to the student. Both the solutions are correct and coincidentally answers in both the cases is same here but it need not be same and it may vary case to case.
	Purchases			Sales			Inventory
DATE	Qty	Unit Cost($)	Total Cost($)	Qty	Unit Cost($)	Total Cost($)	Qty	Unit Cost($)	Total Cost($)
Jul-02	600	12	7200				600	12	7200
Jul-05	200	13	2600	200	13	2600	600	12	7200
Jul-07				100	12	1200	500	12	6000
						0
Jul-10	325	14	4550	325	14	4550	500	12	6000
Jul-12				125	12	1500	375	12	4500
Jul-18	250	13	3250				375	12	4500
							250	13	3250
Jul-22				250	13	3250	370	12	4440
				5	12	60
Jul-25				300	12	3600	70	12	840
Jul-28	330	15	4950				70	12	840
							330	15	4950
Jul-31				75	15	1125	70	12	840
							255	15	3825
Closing Balances						17885			4665
					Case 2 : Assumed that sale happens before purchase
	Purchases			Sales			Inventory
DATE	Qty	Unit Cost($)	Total Cost($)	Qty	Unit Cost($)	Total Cost($)	Qty	Unit Cost($)	Total Cost($)
Jul-02	600	12	7200	0	0	0	600	12	7200
Jul-05	200	13	2600	200	12	2400	400	12	4800
							200	13	2600
Jul-07	0	0	0	100	13	1300	400	12	4800
							100	13	1300
Jul-10	325	14	4550	100	13	1300	175	12	2100
				225	12	2700	325	14	4550
Jul-12	0	0	0	125	14	1750	175	12	2100
							200	14	2800
Jul-18	250	13	3250	0	0	0	175	12	2100
							200	14	2800
							250	13	3250
Jul-22	0	0	0	250	13	3250	175	12	2100
				5	14	70	195	14	2730
Jul-25	0	0	0	195	14	2730	70	12	840
				105	12	1260
Jul-28	330	15	4950	0	0	0	70	12	840
							330	15	4950
Jul-31	0	0	0	75	15	1125	70	12	840
							255	15	3825
Closing Balances						17885			4665