Question

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item 88-HX are as follows:

Oct. 1		Inventory	80 units @ $17
8		Sale	64 units
15		Purchase	89 units @ $19
27		Sale	75 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on Oct. 27 and (b) the inventory on Oct. 31.

a. Cost of goods sold on Oct. 27	$
b. Inventory on Oct. 31

Answer 1

a)	Cost of goods sold on Oct. 27				$ 1,425.00
b)	Inventory on Oct. 31				$    538.00

Workings:

		Purchase				Sales				Balance
Date		Units	Rate	Amount		Units	Rate	Amount		Units	Rate	Amount
1-Oct										80	$   17.00	$ 1,360.00
8-Oct						64	$   17.00	$ 1,088.00		16	$   17.00	$    272.00
15-Oct		89	$   19.00	$ 1,691.00						89	$   19.00	$ 1,691.00
										16	$   17.00	$    272.00
										105		$ 1,963.00
27-Oct						75	$   19.00	$ 1,425.00		14	$   19.00	$    266.00
										16	$   17.00	$    272.00
										30		$    538.00