Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 2,000 units at $24 May 10 1,000 units at $26 May 12 1,400 units 1,200 units 600 units May 20 900 units at $28 May 14 May 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 Quantity Purchased Cost of Merchandise Sold Total Cost Purchases Quantity Cost of Merchandise Sold Unit Cost Purchases Inventory Unit Cost Date Unit Cost Total Cost Sold May Nay May Balances II 11III క్రీ : కీని క్ీ
Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 2,000 units at $24 May 10 1,000 units at $26 May 12 1,400 units 1,200 units 600 units May 20 900 units at $28 May 14 May 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 Quantity Purchased Cost of Merchandise Sold Total Cost Purchases Quantity Cost of Merchandise Sold Unit Cost Purchases Inventory Unit Cost Date Unit Cost Total Cost Sold May Nay May Balances II 11III క్రీ : కీని క్ీ
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:
Inventory
Purchases
Sales
May 1
2,000 units at $24
May 10
1,000 units at $26
May 12
1,400 units
1,200 units
600 units
May 20
900 units at $28
May 14
May 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.

Transcribed Image Text:Schedule of Cost of Merchandise Sold
LIFO Method
Prepaid Cell Phones
Quantity
Purchased
Cost of Merchandise Sold
Total Cost
Purchases
Quantity
Cost of Merchandise
Sold Unit Cost
Purchases
Inventory
Unit Cost
Date
Unit Cost
Total Cost
Sold
May
Nay
May
Balances
II 11III
క్రీ : కీని క్ీ
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