Question

EX 7-9 Weighted average cost flow method under perpetual inventory system OBJ. 3 The following units of a particular item were available for sale during the calendar year: ✓ Total Cost of Merchandise Sold, $154,400 Jan. 1 Apr. 19 June 30 Sept. 2 Nov. 15 Inventory Sale Purchase Sale Purchase 4,000 units at $20 2,500 units 6,000 units at $24 4,500 units 1,000 units at $25 stem. ✓ Total Cost of Merchandise Sold, $152,000 OBJ. 3 Total Cost of Merchandise Sold, $ 158,000 EX 7-11 Perpetual inventory using LIFO Assume that the business in Exercise 7-9 maintains a perpetual inventory system. Deter- mine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4.

Answer 1

Exercise 7-11 LIFO method COGS Purchase Cost Date Total Quantity Cost Total Quantity 01-Jan Ending Inventory Quantity Cost Total 4000 $ 20.00 $ 80,000.00 19-Apr 2500 $ 20.00 $ 50,000.00 1500 $ 20.00 $ 30,000.00 30-Jun 6000 $ 24.00 $144,000.00 1500 $ 6000 $ 20.00 24.00 $ 30,000.00 $144,000.00 02-Sep 4500 $ 24.00 $ 108,000.00 1500 $ 1500 $ 20.00 24.00 $ $ 30,000.00 36,000.00 15-Nov 1000 $ 25.00 $ 25,000.00 1500 $ 1500 $ 1000 $ 20.00 24.00 25.00 $ 30,000.00 $ 36,000.00 $ 25,000.00 7000 $ 158,000.00 4000 $ 91,000.00 Total cost of Merchandise sold $ 158,000.00