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Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 3,700 units at $22 Dec. 10 1,850 units at $24 Dec. 12 2,590 units Dec. 20 1,665 units at $26 Dec. 14 2,220 units Dec. 31 1,110 units 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.

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 3,700 units at $22 Dec. 10 1,850 units at $24 Dec. 12 2,590 units Dec. 20 1,665 units at $26 Dec. 14 2,220 units Dec. 31 1,110 units 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.

FINANCIAL ACCOUNTING
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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Quantity Purchases Purchases Quantity Sold Sold Inventory Inventory Total Purchased Unit Cost Total Cost Sold Unit Total Quantity Unit Cost Date Cost Cost Cost Dec. 3,700 22 81,400 Dec. 1,850 24 44,400 3,700 22 81,400 10 1,850 24 44,400 Dec. 1,850 24 44,400 12 Dec. 14 Dec. 20 Dec. 31 Dec. Balances 31 b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? 00000 00000 I| ||
Transcribed Image Text:Quantity Purchases Purchases Quantity Sold Sold Inventory Inventory Total Purchased Unit Cost Total Cost Sold Unit Total Quantity Unit Cost Date Cost Cost Cost Dec. 3,700 22 81,400 Dec. 1,850 24 44,400 3,700 22 81,400 10 1,850 24 44,400 Dec. 1,850 24 44,400 12 Dec. 14 Dec. 20 Dec. 31 Dec. Balances 31 b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? 00000 00000 I| ||
Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 3,700 units at $22 Dec. 10 1,850 units at $24 Dec. 12 2,590 units Dec. 20 1,665 units at $26 Dec. 14 2,220 units Dec. 31 1,110 units 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 Sold LIFO Method Prepaid Cell Phones Cost of Cost of Goods Goods Inventory Quantity Purchases Purchases Quantity Sold Sold Inventory Inventory Total Purchased Unit Cost Total Cost Sold Unit Total Quantity Unit Cost Date Cost Cost Cost Dec. 3,700 22 81,400 1 Dec
Transcribed Image Text:Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 3,700 units at $22 Dec. 10 1,850 units at $24 Dec. 12 2,590 units Dec. 20 1,665 units at $26 Dec. 14 2,220 units Dec. 31 1,110 units 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 Sold LIFO Method Prepaid Cell Phones Cost of Cost of Goods Goods Inventory Quantity Purchases Purchases Quantity Sold Sold Inventory Inventory Total Purchased Unit Cost Total Cost Sold Unit Total Quantity Unit Cost Date Cost Cost Cost Dec. 3,700 22 81,400 1 Dec
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