Question

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 50 units @ $59 10 Sale 36 units 15 Purchase 63 units @ $63 20 Sale 37 units 24 Sale 9 units 30 Purchase 33 units @ $67 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

	Purchases			Cost of merchandise sold			Balance
Date	Quantity	Rate	Value	Quantity	Rate	Value	Quantity	Rate	Value
Apr. 1							50	59	2950
Apr.10				36	59	2,124	14	59	826
Apr. 15	63	63	3,969				14	59	826
							63	63	3,969
Apl. 20				37	63	2,331	14	59	826
							26	63	1,638
Apr. 24				9	63		14	59	826
							17	63	1,071
Apr. 30	33	67	2,211				14	59	826
							17	63	1,071
							33	67	2,211

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