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 72 units @ $88 50 units 95 units $92 54 units 16 units 40 units @ $96 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.

Solution

Schedule of Cost of Merchandise Sold LIFO Method Portable Game Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Apr. 1 72 88 6336 Apr. 10 10 88 880 62 88 5456 Apr. 15 95 92 8740 62 88 5456 95 92 8740 Apr. 20 54 92 4968 62 88 5456 41 92 3772 Apr. 24 16 92 1472 62 88 5456 25 92 2300 Apr. 30 40 96 3840 62 88 5456 25 92 2300 40 96 3840 Apr. 30 Balance 7320 11596