Perpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inventory Purchases Sales May 11,300 units at $26May 10650 units at $28May 12910 units 20585 units at $30 14780 units 31390 unitsQuestion Content Areaa. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.Schedule of Cost of Merchandise SoldLIFO MethodPrepaid Cell PhonesDateQuantityPurchasedPurchasesUnit CostPurchasesTotal CostQuantitySoldCost ofMerchandiseSoldUnit CostCost ofMerchandiseSoldTotal CostInventoryQuantityInventoryUnit CostInventoryTotal CostMay 1 fill in the blank e714b208ff9803a_1$fill in the blank e714b208ff9803a_2$fill in the blank e714b208ff9803a_3May 10fill in the blank e714b208ff9803a_4$fill in the blank e714b208ff9803a_5$fill in the blank e714b208ff9803a_6 fill in the blank e714b208ff9803a_7fill in the blank e714b208ff9803a_8fill in the blank e714b208ff9803a_9 fill in the blank e714b208ff9803a_10fill in the blank e714b208ff9803a_11fill in the blank e714b208ff9803a_12May 12 fill in the blank e714b208ff9803a_13$fill in the blank e714b208ff9803a_14$fill in the blank e714b208ff9803a_15fill in the blank e714b208ff9803a_16fill in the blank e714b208ff9803a_17fill in the blank e714b208ff9803a_18 fill in the blank e714b208ff9803a_19fill in the blank e714b208ff9803a_20fill in the blank e714b208ff9803a_21 May 14 fill in the blank e714b208ff9803a_22fill in the blank e714b208ff9803a_23fill in the blank e714b208ff9803a_24fill in the blank e714b208ff9803a_25fill in the blank e714b208ff9803a_26fill in the blank e714b208ff9803a_27May 20fill in the blank e714b208ff9803a_28fill in the blank e714b208ff9803a_29fill in the blank e714b208ff9803a_30 fill in the blank e714b208ff9803a_31fill in the blank e714b208ff9803a_32fill in the blank e714b208ff9803a_33 fill in the blank e714b208ff9803a_34fill in the blank e714b208ff9803a_35fill in the blank e714b208ff9803a_36May 31 fill in the blank e714b208ff9803a_37fill in the blank e714b208ff9803a_38fill in the blank e714b208ff9803a_39fill in the blank e714b208ff9803a_40fill in the blank e714b208ff9803a_41fill in the blank e714b208ff9803a_42 fill in the blank e714b208ff9803a_43fill in the blank e714b208ff9803a_44fill in the blank e714b208ff9803a_45May 31Balances $fill in the blank e714b208ff9803a_46 $fill in the blank e714b208ff9803a_47 Question Content Areab. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? Check My Work

Name: Perpetual Inventory Using LIFOBeginning inventory, purchases, and sale
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Perpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inventory Purchases Sales May 11,300 units at $26May 10650 units at $28May 12910 units 20585 units at $30 14780

First-in-first-out and last-in-first-out is a inventory management method. FIFO method under which inventory will be sold first which purchased first and LIFO method under which inventory will be sold first which purchased last.Particular Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost 1st May - - - - - - 1300 26 33800 10th May 650 28 18200 - - - 1300 26 33800 - - - - - - - 650 28 18200 12th May - - - 650 28 18200 1040 26 27040 - - - - 260 26 6760 - - - 14th May - - - 780 26 20280 260 26 6760 20th May 585 30 17550 - - - 260 26 6760 - - - - - - - 585 30 17550 31st May - - - 390 30 11700 260 26 6760 - - - - - - - 195 30 5850 Total sales 56940 Ending inventory 12610Particular Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost 1st May - - - - - - 1300 26 33800 10th May 650 28 18200 - - - 1300 26 33800 - - - - - - - 650 28 18200 12th May - - - 910 26 23660 390 26 10140 - - - - 650 28 18200 14th May - - - 390 26 10140 260 28 7280 390 28 10920 20th May 585 30 17550 - - - 260 28 7280 - - - - - - - 585 30 17550 31st May - - - 260 28 7280 455 30 13650 - - - - 130 30 3900 Total sales 55900 Ending inventory 13650

Answered: a. Assuming that the perpetual…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Question Content Area

a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise 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 Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

Schedule of Cost of Merchandise SoldLIFO MethodPrepaid Cell Phones

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
May 1							fill in the blank e714b208ff9803a_1	$fill in the blank e714b208ff9803a_2	$fill in the blank e714b208ff9803a_3
May 10	fill in the blank e714b208ff9803a_4	$fill in the blank e714b208ff9803a_5	$fill in the blank e714b208ff9803a_6				fill in the blank e714b208ff9803a_7	fill in the blank e714b208ff9803a_8	fill in the blank e714b208ff9803a_9
							fill in the blank e714b208ff9803a_10	fill in the blank e714b208ff9803a_11	fill in the blank e714b208ff9803a_12
May 12				fill in the blank e714b208ff9803a_13	$fill in the blank e714b208ff9803a_14	$fill in the blank e714b208ff9803a_15	fill in the blank e714b208ff9803a_16	fill in the blank e714b208ff9803a_17	fill in the blank e714b208ff9803a_18
				fill in the blank e714b208ff9803a_19	fill in the blank e714b208ff9803a_20	fill in the blank e714b208ff9803a_21
May 14				fill in the blank e714b208ff9803a_22	fill in the blank e714b208ff9803a_23	fill in the blank e714b208ff9803a_24	fill in the blank e714b208ff9803a_25	fill in the blank e714b208ff9803a_26	fill in the blank e714b208ff9803a_27
May 20	fill in the blank e714b208ff9803a_28	fill in the blank e714b208ff9803a_29	fill in the blank e714b208ff9803a_30				fill in the blank e714b208ff9803a_31	fill in the blank e714b208ff9803a_32	fill in the blank e714b208ff9803a_33
							fill in the blank e714b208ff9803a_34	fill in the blank e714b208ff9803a_35	fill in the blank e714b208ff9803a_36
May 31				fill in the blank e714b208ff9803a_37	fill in the blank e714b208ff9803a_38	fill in the blank e714b208ff9803a_39	fill in the blank e714b208ff9803a_40	fill in the blank e714b208ff9803a_41	fill in the blank e714b208ff9803a_42
							fill in the blank e714b208ff9803a_43	fill in the blank e714b208ff9803a_44	fill in the blank e714b208ff9803a_45
May 31	Balances					$fill in the blank e714b208ff9803a_46			$fill in the blank e714b208ff9803a_47

Question Content Area

b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?

Check My Work

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Inventory		Purchases		Sales
May 1	1,300 units at $26	May 10	650 units at $28	May 12	910 units
		20	585 units at $30	14	780 units
				31	390 units