Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 3,800 units at $23 Dec. 10 1,900 units at $25 Dec. 12 2,660 units Dec. 20 1,710 units at $27 Dec. 14 2,280 units Dec. 31 1,140 units Question Content Area a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods SoldLIFO MethodPrepaid Cell Phones Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Dec. 1 fill in the blank 96b90efbdff2020_1 fill in the blank 96b90efbdff2020_2 fill in the blank 96b90efbdff2020_3 Dec. 10 fill in the blank 96b90efbdff2020_4 fill in the blank 96b90efbdff2020_5 fill in the blank 96b90efbdff2020_6 fill in the blank 96b90efbdff2020_7 fill in the blank 96b90efbdff2020_8 fill in the blank 96b90efbdff2020_9 fill in the blank 96b90efbdff2020_10 fill in the blank 96b90efbdff2020_11 fill in the blank 96b90efbdff2020_12 Dec. 12 fill in the blank 96b90efbdff2020_13 fill in the blank 96b90efbdff2020_14 fill in the blank 96b90efbdff2020_15 fill in the blank 96b90efbdff2020_16 fill in the blank 96b90efbdff2020_17 fill in the blank 96b90efbdff2020_18 fill in the blank 96b90efbdff2020_19 fill in the blank 96b90efbdff2020_20 fill in the blank 96b90efbdff2020_21 Dec. 14 fill in the blank 96b90efbdff2020_22 fill in the blank 96b90efbdff2020_23 fill in the blank 96b90efbdff2020_24 fill in the blank 96b90efbdff2020_25 fill in the blank 96b90efbdff2020_26 fill in the blank 96b90efbdff2020_27 Dec. 20 fill in the blank 96b90efbdff2020_28 fill in the blank 96b90efbdff2020_29 fill in the blank 96b90efbdff2020_30 fill in the blank 96b90efbdff2020_31 fill in the blank 96b90efbdff2020_32 fill in the blank 96b90efbdff2020_33 fill in the blank 96b90efbdff2020_34 fill in the blank 96b90efbdff2020_35 fill in the blank 96b90efbdff2020_36 Dec. 31 fill in the blank 96b90efbdff2020_37 fill in the blank 96b90efbdff2020_38 fill in the blank 96b90efbdff2020_39 fill in the blank 96b90efbdff2020_40 fill in the blank 96b90efbdff2020_41 fill in the blank 96b90efbdff2020_42 fill in the blank 96b90efbdff2020_43 fill in the blank 96b90efbdff2020_44 fill in the blank 96b90efbdff2020_45 Dec. 31 Balances fill in the blank 96b90efbdff2020_46 fill in the blank 96b90efbdff2020_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?

Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 3,800 units at $23 Dec. 10 1,900 units at $25 Dec. 12 2,660 units Dec. 20 1,710 units at $27 Dec. 14 2,280 units Dec. 31 1,140 units Question Content Area a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods SoldLIFO MethodPrepaid Cell Phones Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Dec. 1 fill in the blank 96b90efbdff2020_1 fill in the blank 96b90efbdff2020_2 fill in the blank 96b90efbdff2020_3 Dec. 10 fill in the blank 96b90efbdff2020_4 fill in the blank 96b90efbdff2020_5 fill in the blank 96b90efbdff2020_6 fill in the blank 96b90efbdff2020_7 fill in the blank 96b90efbdff2020_8 fill in the blank 96b90efbdff2020_9 fill in the blank 96b90efbdff2020_10 fill in the blank 96b90efbdff2020_11 fill in the blank 96b90efbdff2020_12 Dec. 12 fill in the blank 96b90efbdff2020_13 fill in the blank 96b90efbdff2020_14 fill in the blank 96b90efbdff2020_15 fill in the blank 96b90efbdff2020_16 fill in the blank 96b90efbdff2020_17 fill in the blank 96b90efbdff2020_18 fill in the blank 96b90efbdff2020_19 fill in the blank 96b90efbdff2020_20 fill in the blank 96b90efbdff2020_21 Dec. 14 fill in the blank 96b90efbdff2020_22 fill in the blank 96b90efbdff2020_23 fill in the blank 96b90efbdff2020_24 fill in the blank 96b90efbdff2020_25 fill in the blank 96b90efbdff2020_26 fill in the blank 96b90efbdff2020_27 Dec. 20 fill in the blank 96b90efbdff2020_28 fill in the blank 96b90efbdff2020_29 fill in the blank 96b90efbdff2020_30 fill in the blank 96b90efbdff2020_31 fill in the blank 96b90efbdff2020_32 fill in the blank 96b90efbdff2020_33 fill in the blank 96b90efbdff2020_34 fill in the blank 96b90efbdff2020_35 fill in the blank 96b90efbdff2020_36 Dec. 31 fill in the blank 96b90efbdff2020_37 fill in the blank 96b90efbdff2020_38 fill in the blank 96b90efbdff2020_39 fill in the blank 96b90efbdff2020_40 fill in the blank 96b90efbdff2020_41 fill in the blank 96b90efbdff2020_42 fill in the blank 96b90efbdff2020_43 fill in the blank 96b90efbdff2020_44 fill in the blank 96b90efbdff2020_45 Dec. 31 Balances fill in the blank 96b90efbdff2020_46 fill in the blank 96b90efbdff2020_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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question Content Area

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

Schedule of Cost of Goods SoldLIFO MethodPrepaid Cell Phones

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Dec. 1							fill in the blank 96b90efbdff2020_1	fill in the blank 96b90efbdff2020_2	fill in the blank 96b90efbdff2020_3
Dec. 10	fill in the blank 96b90efbdff2020_4	fill in the blank 96b90efbdff2020_5	fill in the blank 96b90efbdff2020_6				fill in the blank 96b90efbdff2020_7	fill in the blank 96b90efbdff2020_8	fill in the blank 96b90efbdff2020_9
							fill in the blank 96b90efbdff2020_10	fill in the blank 96b90efbdff2020_11	fill in the blank 96b90efbdff2020_12
Dec. 12				fill in the blank 96b90efbdff2020_13	fill in the blank 96b90efbdff2020_14	fill in the blank 96b90efbdff2020_15	fill in the blank 96b90efbdff2020_16	fill in the blank 96b90efbdff2020_17	fill in the blank 96b90efbdff2020_18
				fill in the blank 96b90efbdff2020_19	fill in the blank 96b90efbdff2020_20	fill in the blank 96b90efbdff2020_21
Dec. 14				fill in the blank 96b90efbdff2020_22	fill in the blank 96b90efbdff2020_23	fill in the blank 96b90efbdff2020_24	fill in the blank 96b90efbdff2020_25	fill in the blank 96b90efbdff2020_26	fill in the blank 96b90efbdff2020_27
Dec. 20	fill in the blank 96b90efbdff2020_28	fill in the blank 96b90efbdff2020_29	fill in the blank 96b90efbdff2020_30				fill in the blank 96b90efbdff2020_31	fill in the blank 96b90efbdff2020_32	fill in the blank 96b90efbdff2020_33
							fill in the blank 96b90efbdff2020_34	fill in the blank 96b90efbdff2020_35	fill in the blank 96b90efbdff2020_36
Dec. 31				fill in the blank 96b90efbdff2020_37	fill in the blank 96b90efbdff2020_38	fill in the blank 96b90efbdff2020_39	fill in the blank 96b90efbdff2020_40	fill in the blank 96b90efbdff2020_41	fill in the blank 96b90efbdff2020_42
							fill in the blank 96b90efbdff2020_43	fill in the blank 96b90efbdff2020_44	fill in the blank 96b90efbdff2020_45
Dec. 31	Balances					fill in the blank 96b90efbdff2020_46			fill in the blank 96b90efbdff2020_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?

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Inventory		Purchases		Sales
Dec. 1	3,800 units at $23	Dec. 10	1,900 units at $25	Dec. 12	2,660 units
		Dec. 20	1,710 units at $27	Dec. 14	2,280 units
				Dec. 31	1,140 units