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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Perpetual inventory using LIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
64 units at $70
49 units
83 units at $74
47 units
Nov. 1 Inventory
10 Sale
15 Purchase
20 Sale
24 Sale
30 Purchase
The business maintains a perpetual inventory system, costing by the last-in, first-out 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.
13 units
37 units at $77
LIFO Method
Transcribed Image Text:Perpetual inventory using LIFO Beginning inventory, purchases, and sales data for DVD players are as follows: 64 units at $70 49 units 83 units at $74 47 units Nov. 1 Inventory 10 Sale 15 Purchase 20 Sale 24 Sale 30 Purchase The business maintains a perpetual inventory system, costing by the last-in, first-out 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. 13 units 37 units at $77 LIFO Method
Date
Nov. 1
Nov. 10
Nov. 15
Nov. 201
Nov. 24
Quantity Purchases Purchases
Purchased Unit Cost Total Cost
Nov. 30
83 ✓
Nov. 30 Balances
74 ✓
6,142 ✔
LIFO Method
DVD Players
Quantity
Sold
X
Cost of
Goods Sold
Unit Cost
24 ✓
74
Cost of
Goods Sold Inventory
Total Cost Quantity
3,430 ✓
3,478 ✔
X
64 ✓
15
15
83
15
x
Inventory Inventory
Unit Cost Total Cost
70 ✓
70
70 ✓
74 ✓
70
>
4.480 ✔
1,050 ✔
1,050 ✓
6,142 ✔
Loso ✔
X
Transcribed Image Text:Date Nov. 1 Nov. 10 Nov. 15 Nov. 201 Nov. 24 Quantity Purchases Purchases Purchased Unit Cost Total Cost Nov. 30 83 ✓ Nov. 30 Balances 74 ✓ 6,142 ✔ LIFO Method DVD Players Quantity Sold X Cost of Goods Sold Unit Cost 24 ✓ 74 Cost of Goods Sold Inventory Total Cost Quantity 3,430 ✓ 3,478 ✔ X 64 ✓ 15 15 83 15 x Inventory Inventory Unit Cost Total Cost 70 ✓ 70 70 ✓ 74 ✓ 70 > 4.480 ✔ 1,050 ✔ 1,050 ✓ 6,142 ✔ Loso ✔ X
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