Question

Perpetual Inventory Using LIFO

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

November 1		Inventory	42 units at $99
10		Sale	33 units
15		Purchase	54 units at $105
20		Sale	31 units
24		Sale	9 units
30		Purchase	33 units at $111

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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

Schedule of Cost of Goods Sold
LIFO Method
DVD Players
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Nov. 1								$	$
Nov. 10					$	$
Nov. 15		$	$
Nov. 20
Nov. 24
Nov. 30
Nov. 30	Balances					$			$

Answer 1

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,

Date	Quantity Purchased	Purchase unit cost	Purchase total cost	Quantity sold	Cost of Goods Sold Unit Cost	Cost of goods sold total cost	Inventory quantity	Inventory Unit Cost	Inventory total Cost
Nov 1							42	99	4158
Nov 10				33	99	3267	9	99	891
Nov 15	54	105	5670				9 54	99 105	891 5670
Nov 20				31	105	3255	9 23	99 105	891 2415
Nov 24				9	105	945	9 14	99 105	891 1470
Nov 30	33	111	3663				9 14 33	99 105 111	891 1470 3663
Nov 30	Balances					7467			6024