erpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inventory Purchases Sales May 12,700 units at $37May 101,350 units at $39May 121,890 units 201,215 units at $41 141,620 units 31810 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. Perpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:InventoryPurchasesMay 10May 12,700 units at $371,350 units at $39SalesMay 1214810 units1,890 units1,620 units201,215 units at $4131a. 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. UnderLIFO, 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 PhonesCost ofMerchandiseSoldCost ofMerchandiseSoldQuantityPurchases Purchases QuantityUnit Cost Total Cost SoldUnit CostTotal CostInventory Inventory InventoryQuantity Unit Cost Total CostDate PurchasedMay 12,700$$ 99,9003737May 101,3503952,6502,70099,9001,3503952,650May 121,3503952,650May 14May 20May 31May 31 Balancesb. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?

Name: erpetual Inventory Using LIFOBeginning inventory, purchases, and sales
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Description: erpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inventory Purchases Sales May 12,700 units at $37May 101,350 units at $39May 121,890 units 201,215 units at $41 1

LIFO - Last in first out means all the purchases which have been purchased lately will be sold first…

Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases May 10 Sales May 12 May 1 2,700 units at $37 1,350 units at $39 1,890 units 1,620 units 20 1,215 units at $41 14 31 810 units 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. Und 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 Sold LIFO Method Prepaid Cell Phones Cost of Cost of Merchandise Sold Merchandise Sold Purchases Purchases Quantity Unit Cost Total Cost Sold Unit Cost Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost Quantity Date Purchased May 1 2.700 99,900 37 37 May 10 1.350 39 52,650 2,700 99,900 1.350 39 52.650 May 12 1.350 39 May 14 May 20 May 31 May 31 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? 0 000 00 52.650

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 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.

Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:
Inventory
Purchases
May 10
May 1
2,700 units at $37
1,350 units at $39
Sales
May 12
14
810 units
1,890 units
1,620 units
20
1,215 units at $41
31
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 Sold
LIFO Method
Prepaid Cell Phones
Cost of
Merchandise
Sold
Cost of
Merchandise
Sold
Quantity
Purchases Purchases Quantity
Unit Cost Total Cost Sold
Unit Cost
Total Cost
Inventory Inventory Inventory
Quantity Unit Cost Total Cost
Date Purchased
May 1
2,700
$
$ 99,900
37
37
May 10
1,350
39
52,650
2,700
99,900
1,350
39
52,650
May 12
1,350
39
52,650
May 14
May 20
May 31
May 31 Balances
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
May 1	2,700 units at $37	May 10	1,350 units at $39	May 12	1,890 units
		20	1,215 units at $41	14	1,620 units
				31	810 units