Question

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 1,400 units at $28 Dec. 10 700 units at $30 Dec. 12 980 units Dec. 20 630 units at $32 Dec. 14 840 units Dec. 31 420 units a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods 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 Prepaid Cell Phones 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 Dec. 1 $ $ Dec. 10 $ $ Dec. 12 $ $ Dec. 14 Dec. 20 Dec. 31 Dec. 31 Balances $ $

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
Dec. 1								$	$
Dec. 10		$	$
Dec. 12					$	$
Dec. 14
Dec. 20
Dec. 31

Answer 1

Schedule

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
Dec. 1							1400	$28	$39200
Dec. 10	700	$30	$21000				1400	28	39200
							700	30	21000
Dec. 12				700	$30	$21000
				280	28	7840	1120	28	31360
Dec. 14				840	28	23520	280	28	7840
Dec. 20	630	32	20160				280	28	7840
							630	32	20160

Dec 31				420	32	13440	280	28	7840
							210	32	6720
Dec 31	Balance					65800			14560

Cost of goods sold = $65800; Ending inventory = $14560