Perpetual Inventory Using LIFO
The following units of a particular item were available for sale during the calendar year:
Jan. 1 Inventory 4,000 units at $20 Apr. 19 Sale 2,500 units June 30 Purchase 6,000 units at $24 Sept. 2 Sale 4,500 units Nov. 15 Purchase 1,000 units at $25
The firm maintains a perpetual inventory system. Determine 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 5. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column.
Schedule of Cost of Merchandise Sold
LIFO Method Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 $ $ Apr. 19 $ $ June 30 $ $ Sept. 2 Nov. 15 Dec. 31 Balances $ $
Perpetual Inventory Using LIFO
The following units of a particular item were available for sale during the calendar year:
| Jan. 1 | Inventory | 4,000 units at $20 |
| Apr. 19 | Sale | 2,500 units |
| June 30 | Purchase | 6,000 units at $24 |
| Sept. 2 | Sale | 4,500 units |
| Nov. 15 | Purchase | 1,000 units at $25 |
The firm maintains a perpetual inventory system. Determine 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 5. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column.
| Schedule of Cost of Merchandise Sold LIFO Method | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Purchases | Cost of Merchandise Sold | Inventory | |||||||
| Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
| Jan. 1 | $ | $ | |||||||
| Apr. 19 | $ | $ | |||||||
| June 30 | $ | $ | |||||||
| Sept. 2 | |||||||||
| Nov. 15 | |||||||||
| Dec. 31 | Balances | $ | $ | ||||||
Related questions
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for portable DVDplayers are as follows:
| June 1 | Inventory | 46 units @ $45 | |
| 6 | Sale | 39 units | |
| 14 | Purchase | 58 units @ $48 | |
| 19 | Sale | 32 units | |
| 25 | Sale | 9 units | |
| 30 | Purchase | 24 units @ $51 |
The business maintains a perpetual inventory system, costing bythe last-in, first-out method.
Determine the cost of merchandise sold for each sale and theinventory balance after each sale, presenting the data in the formillustrated 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 ofMerchandise Sold Unit Cost column and LOWER unit cost first in theInventory Unit Cost column.
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the firm uses the weighted average cost method with a perpetualinventory system. Determine the cost of merchandise sold for eachsale and the inventory balance after each sale. Present the data inthe form illustrated in Exhibit 5
Jan 1 | Inventory | 8,000 | Units @ $40 |
Apr 19 | Sale | 5,000 | Units |
June 30 | Purchase | 12,000 | Units @ $48 |
Sept 2 | Sale | 9,000 | Units |
Nov 15 | Purchase | 2,000 | Units @ $50 |
