Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 49 units @ $49 10 Sale 41 units 15 Purchase 60 units @ $51 20 Sale 34 units 24 Sale 10 units 30 Purchase 39 units @ $54 The business maintains a perpetual inventory system, costing by the last-in, first-out 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 Portable Game Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Apr. 1 $ $ Apr. 10 $ $ Apr. 15 $ $ Apr. 20 Apr. 24 Apr. 30 Apr. 30 Balance $ $

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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Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales data for portable DVD players are as follows:

Apr. 1	Inventory	49 units @ $49
10	Sale	41 units
15	Purchase	60 units @ $51
20	Sale	34 units
24	Sale	10 units
30	Purchase	39 units @ $54

The business maintains a perpetual inventory system, costing by the last-in, first-out 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
Portable Game Players
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Apr. 1								$	$
Apr. 10					$	$
Apr. 15		$	$

Apr. 20

Apr. 24

Apr. 30


Apr. 30	Balance					$			$

Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
Apr. 1
Inventory
49 units @ $49
10
Sale
41 units
15
Purchase
60 units @ $51
20
Sale
34 units
24
Sale
10 units
30
Purchase
39 units @ $54
The business maintains a perpetual inventory system, costing by the last-in, first-out 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
Portable Game Players
Quantity
Purchases
Purchases Quantity
Cost of Merchandise
Cost of Merchandise
Inventory
Inventory
Inventory
Date
Purchased
Unit Cost
Total Cost
Sold
Sold Unit Cost
Sold Total Cost
Quantity
Unit Cost
Total Cost
Apr.
1
Apr.
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Schedule of Cost of Merchandise Sold
LIFO Method
Portable Game Players
Purchases Quantity
Quantity
Purchased
Purchases
Cost of Merchandise
Cost of Merchandise
Inventory
Inventory
Inventory
Date
Unit Cost
Total Cost
Sold
Sold Unit Cost
Sold Total Cost
Quantity
Unit Cost
Total Cost
Apr.
1
Apr.
10
Apr.
15
Apr.
20
Apr.
24
Apr.
30
Apr.
Balance
30
Check My Work 2 more Check My Work uses remaining.
Previous
Next
All work saved.
Email Instructor
Save and Exit
Submit Assignment for Grading
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0 00
Q 00

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