Question

Perpetual Inventory Using LIFO

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

Apr. 1		Inventory	79 units @ $84
10		Sale	53 units
15		Purchase	105 units @ $89
20		Sale	58 units
24		Sale	18 units
30		Purchase	29 units @ $93

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 goods sold

LIFO method :

Date	Quantity Purchased	Purchases unit cost	Purchases total cost	Quantity sold	Purchases unit cost	Cost of Merchandise Sold Total Cost	Inventory unit	Unit cost	Inventory Total Cost
Apr 1							79	84	6636
Apr 10				53	84	4452	26	84	2184
Apr 15	105	89	9345				26 105	84 89	2184 9345
Apr 20				58	89	5162	26 47	84 89	2184 4183
APr 24				18	89	1602	26 29	84 89	2184 2581
APr 30	29	93	2697				26 29 29	84 89 93	2184 2581 2697
Total						11216			7462