Perpetual Inventory Using LIFOBeginninginventory, purchases, and sales data for portable game players are as follows:Apr. 1 Inventory40 units @ $5810Sale33 units15Purchase53 units @ $6120Sale31 units24 Sale8 units30Purchase36 units @ $65The 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 theInventory Unit Cost column.Perpetual Inventory AccountLIFO MethodPortable Game PlayersInventory Inventory InventoryQuantityPurchases Purchases QuantityUnit Cost Total CostSoldQuantity Unit Cost Total CostDate PurchasedApr. 1Apr. 10Apr. 15Apr. 20Apr. 24Apr. 30Apr. 30 Balance000Cost ofCost ofMerchandise MerchandiseSoldSoldUnit Cost Total Cost0 000▬▬▬▬▬▬

Lets understand the basics. In LIFO basis company assumes that, goods purchase last in the inventory…

Answered: ž Inventory U Apr 24 Apr. 30 Apr 30…

ž Inventory U Apr 24 Apr. 30 Apr 30 Balance 0 s, and sales data for portable game players are as follows: 53 units @ $61 first-out method. 0 1¹ 000 00 0

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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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Perpetual Inventory Using LIFO
Beginning
inventory, purchases, and sales data for portable game players are as follows:
Apr. 1 Inventory
40 units @ $58
10
Sale
33 units
15
Purchase
53 units @ $61
20
Sale
31 units
24 Sale
8 units
30
Purchase
36 units @ $65
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.
Perpetual Inventory Account
LIFO Method
Portable Game Players
Inventory Inventory Inventory
Quantity
Purchases Purchases Quantity
Unit Cost Total Cost
Sold
Quantity Unit Cost Total Cost
Date Purchased
Apr. 1
Apr. 10
Apr. 15
Apr. 20
Apr. 24
Apr. 30
Apr. 30 Balance
0
00
Cost of
Cost of
Merchandise Merchandise
Sold
Sold
Unit Cost Total Cost
0 00
0
▬▬▬▬▬▬

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