Perpetual Inventory Using LIFO Beginning inventory purchases

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 10 Sale 15 Purchase 20 Sale 24 Sale 30 Purchase 58 units @ $54 40 units 77 units @ $57 42 units 11 units 23 units @ $60 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

Solution

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Apr 58 54 3132 10-Apr 40 54 2160 18 54 972 15-Apr 77 57 4389 18 54 972 77 57 4389 20-Apr 42 57 2394 18 54 972 35 57 1995 24-Apr 11 57 627 18 54 972 24 57 1368 30-Apr 23 60 1380 18 54 972 24 57 1368 23 60 1380 TOTAL 100 5769 93 5181 65 3720 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 30000 30 900000 18-Mar 24000 30 720000 6000 30 180000 2-May 54000 31 1674000 60000 30.9 1854000 9-Aug 45000 30.9 1390500 15000 30.9 463500 20-Oct 21000 32.1 674100 36000 31.6 1137600 TOTAL 75000 2348100 69000 2110500 36000 31.6 1137600