Question

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales data for portable game players are as follows:

Apr. 1		Inventory	43 units @ $94
10		Sale	33 units
15		Purchase	57 units @ $99
20		Sale	32 units
24		Sale	8 units
30		Purchase	37 units @ $104

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.

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								$	$
Apr. 10					$	$
Apr. 15		$	$
Apr. 20
Apr. 24
Apr. 30
Apr. 30	Balance					$			$

Answer 1

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							43	$94	$4042
Apr. 10				33	$94	$3102	10	94	940
Apr. 15	57	$99	$5643				10	94	940
							57	99	5643
Apr. 20				32	99	3168	10	94	940
							25	99	2475
Apr. 24				8	99	792	10	94	940
							17	99	1683
Apr. 30	37	104	3848				10	94	940
							17	99	1683
							37	104	3848
Apr. 30	Balance					$7062			$6471

Cost of goods sold = $7062

Ending inventory = $6471