Question

# Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable game players are as...

Perpetual Inventory Using LIFO

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

 Apr. 1 Inventory 63 units @ \$100 10 Sale 50 units 15 Purchase 77 units @ \$106 20 Sale 45 units 24 Sale 11 units 30 Purchase 31 units @ \$110

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 \$ \$

 Schedule of Cost of Merchandise Sold LIFO Method Portable Game Players Date Quantity purchased Purchase unit cost Purchases Total Cost Quantity cost of merchandise sold cost of merchandise sold Unit cost cost of merchandise sold Total Cost Inventory quantity Inventory Unit Cost Inventory Total Cost Apr-01 63 100 6,300 Apr-10 50 100 5,000 13 100 1,300 Apr-15 77 106 8,162 13 100 1,300 77 106 8,162 Apr-20 45 106 4,770 13 100 1,300 32 106 3,392 Apr-24 11 106 1,166 13 100 1,300 21 106 2,226 Apr-30 31 110 3,410 13 100 1,300 21 106 2,226 31 110 3,410 Balance \$10,936 \$6,936

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