Using FiFo Calculator Perpetual Inventory Using LIFGo Beginn

Using FiFo Calculator Perpetual Inventory Using LIFGo Beginning inventory, purchases, and sales for Item ER27 are as follows 80 units $23 64 units 89 units $27 75 units July 1 Inventory 5 Sale 11 Purchase 21 Sale Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on July 21 and (b) the inventory on July 31 a. Cost of merchandise sold on July 21 b. Inventory on July 31 ?Pre Next

Solution

Perpetual inventory system is one in which records the sale or purchase immedialtey when it happens
a)75 units sold and cost of it is =(75*27)=2025
b)inventory on jul 31st:
as on july 5 it is 16 units @23
as on july 11 it is 16 units @23 and 89 units @27
as on Jul 31st it is =(16*23)+(14*27)=746