The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date of Transaction Number of Units Per unit Total Apr 3 - inventory 40 $670 $26,800 8 - purchase 120 690 82,800 11- sale 60 1,120 67,200 30 - sale 50 1,120 56,000 May 8 - purchase 100 700 70,000 10 - sale 80 1,120 89,000 19 - sale 30 1,120 33,600 28 - purchase 120 707 84,840 June 5 - sale 60 1,260 75,600 16 - sale 40 1,260 50,400 21 - purchase 180 712 128,160 28 - sale 190 1,260 239,400 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 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. Rhodes Co. Perpetual Inventory Account LIFO Method For the three-months ended June 30 Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr. 3 $ $ Apr. 8 $ $ Apr. 11 $ $ Apr. 30 May 8 May 10 May 19 May 28 June 5 June 16 June 21 June 28 June 30 Balances $ $ 2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period. Total sales $ Total cost of merchandise sold Gross profit $ 3. Determine the ending inventory cost on June 30.

The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date of Transaction Number of Units Per unit Total Apr 3 - inventory 40 $670 $26,800 8 - purchase 120 690 82,800 11- sale 60 1,120 67,200 30 - sale 50 1,120 56,000 May 8 - purchase 100 700 70,000 10 - sale 80 1,120 89,000 19 - sale 30 1,120 33,600 28 - purchase 120 707 84,840 June 5 - sale 60 1,260 75,600 16 - sale 40 1,260 50,400 21 - purchase 180 712 128,160 28 - sale 190 1,260 239,400 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 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. Rhodes Co. Perpetual Inventory Account LIFO Method For the three-months ended June 30 Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr. 3 $ $ Apr. 8 $ $ Apr. 11 $ $ Apr. 30 May 8 May 10 May 19 May 28 June 5 June 16 June 21 June 28 June 30 Balances $ $ 2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period. Total sales $ Total cost of merchandise sold Gross profit $ 3. Determine the ending inventory cost on June 30.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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LIFO Perpetual Inventory

The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Date of Transaction	Number of Units	Per unit	Total
Apr 3 - inventory	40	$670	$26,800
8 - purchase	120	690	82,800
11- sale	60	1,120	67,200
30 - sale	50	1,120	56,000
May 8 - purchase	100	700	70,000
10 - sale	80	1,120	89,000
19 - sale	30	1,120	33,600
28 - purchase	120	707	84,840
June 5 - sale	60	1,260	75,600

16 - sale	40	1,260	50,400
21 - purchase	180	712	128,160
28 - sale	190	1,260	239,400

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 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.

Rhodes Co. Perpetual Inventory Account LIFO Method For the three-months ended June 30
	Purchases	Cost of Merchandise Sold	Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Apr. 3								$	$
Apr. 8		$	$

Apr. 11					$	$

Apr. 30

May 8


May 10


May 19

May 28

June 5

June 16

June 21


June 28

June 30	Balances					$			$

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

Total sales	$
Total cost of merchandise sold
Gross profit	$

3. Determine the ending inventory cost on June 30.
$

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