Perpetual Inventory Using LIFO Beginning inventory purchases

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item CZ83 are as follows 110 units @ $24 88 units 122 units@ $26 102 units July1 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

Solution

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Cost of Merchandise Sold: Purchase Sale Ending Inventory Units Cost per unit Total Cost Units Cost per unit Total Cost Units Cost per unit Total Cost Beginning Inventory 110 24 2640 110 24 2640 5th July Sale 88 24 2112 22 24 528 11th July Pur 122 26 3172 22 24 528 122 26 3172 21st July Sale 102 26 2652 22 24 528 20 26 520 Total 232 5812 190 4764 42 1048 a Cost of Merchandise Sold 4764 b Inventory on July 31 1048