Question

The following units of a particular item were available for sale during the calendar year:

Jan. 1	Inventory	4,000 units at $20
Apr. 19	Sale	2,500 units
June 30	Purchase	6,000 units at $24
Sept. 2	Sale	4,500 units
Nov. 15	Purchase	1,000 units at $25

The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column.

Schedule of Cost of Goods Sold LIFO Method
	Purchases			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1							fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Apr. 19				fill in the blank 4	$fill in the blank 5	$fill in the blank 6	fill in the blank 7	fill in the blank 8	fill in the blank 9
June 30	fill in the blank 10	$fill in the blank 11	$fill in the blank 12				fill in the blank 13	fill in the blank 14	fill in the blank 15
							fill in the blank 16	fill in the blank 17	fill in the blank 18
Sept. 2				fill in the blank 19	fill in the blank 20	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24
							fill in the blank 25	fill in the blank 26	fill in the blank 27
Nov. 15	fill in the blank 28	fill in the blank 29	fill in the blank 30				fill in the blank 31	fill in the blank 32	fill in the blank 33
							fill in the blank 34	fill in the blank 35	fill in the blank 36
							fill in the blank 37	fill in the blank 38	fill in the blank 39
Dec. 31	Balances					$fill in the blank 40			$fill in the blank 41

Answer 1

costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column.

Schedule of Cost of Goods Sold LIFO Method
	Purchases			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1							4000	20	80000
Apr. 19				2500	20	50000	1500	20	30000
June 30	6000	24	144000				1500	20	30000
							6000	24	144000
Sept. 2				4500	24	108000	1500	20	30000
							1500	24	36000
Nov. 15	1000	25	25000				1500	20	30000
							1500	24	36000
							1000	25	25000
Dec. 31	Balances					158000			91000