Question

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item CZ83 are as follows:

March 1		Inventory	84 units @ $22
5		Sale	67 units
11		Purchase	93 units @ $25
21		Sale	78 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on March 21 and (b) the inventory on March 31.

a. Cost of merchandise sold on March 21

$

b. Inventory on March 31 $

Answer 1

	Available for sale			Cost of goods sold			Ending Inventory
Date	Units	Unit cost	Total Cost	Units	Unit cost	Total Cost	Units	Unit Cost	Total Cost
Mar-01							84	22	1,848
Mar-05				67	22	1,474	17	22	374
Mar-11	93	25	2,325				17	22	374
							93	25	2,325
Mar-21				78	25	1,950	17	22	374
							15	25	375
Total						3,424			749

a.

a. Cost of merchandise sold on March 21

$3,424

b.

  Inventory on March 31 $749.

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