Question

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					$			$

Answer 1

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