Beginning inventory, purchases, and sales for Item 88-HX are as follows: 108 units @ $33 86 units 120 units @ $36 101 units Mar. 1 8 15 27 Inventory Sale Purchase Sale Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on Mar. 27 and (b) the inventory on Mar. 31. a. Cost of goods sold on Mar. 27 b. Inventory on Mar. 31 +A $ $ 3,636 1,476 X
Beginning inventory, purchases, and sales for Item 88-HX are as follows: 108 units @ $33 86 units 120 units @ $36 101 units Mar. 1 8 15 27 Inventory Sale Purchase Sale Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on Mar. 27 and (b) the inventory on Mar. 31. a. Cost of goods sold on Mar. 27 b. Inventory on Mar. 31 +A $ $ 3,636 1,476 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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JJ. 174.
Transcribed Image Text:Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales for Item 88-HX are as follows:
Mar. 1
108 units @ $33
8
86 units
15
120 units @ $36
27 Sale
101 units
Assuming a perpetual inventory system and using the last-in, first-out (LIFO)
method, determine (a) the cost of goods sold on Mar. 27 and (b) the inventory
on Mar. 31.
Inventory
Feedback
Sale
Purchase
a. Cost of goods sold on Mar. 27
b. Inventory on Mar. 31
LA
3,636
1,476 X
V
Check My Work
a. When the LIFO method is used, the cost of the units sold is the cost of the most
recent purchases. Think of your inventory in terms of "layers." Determine how much
inventory remains from each layer after each sale.
b. The ending inventory is made up of the oldest purchases.
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