Question

Perpetual Inventory Using LIFO

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

November 1		Inventory	120 units at $39
10		Sale	90 units
15		Purchase	140 units at $40
20		Sale	110 units
24		Sale	45 units
30		Purchase	160 units at $43

The business maintains a perpetual inventory system, costing by the last-in, first-out 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.

Answer 1

LIFO Perpetual Inventory Card
Date	Purchase			Cost of goods Sold			Inventory Balance
	Units	Unit Cost	Total	Units	Unit Cost	Total	Units	Unit Cost	Total
1-Nov	Opening Inventory						120	$39	4680
10-Nov				90	$39	3510	30	$39	1170
15-Nov	140	$40	5600				30	$39	1170
							140	$40	5600
20-Nov				110	$40	4400	30	$39	1170
							30	$40	1200
24-Nov				30	$40	1200
				15	$39	585	15	$39	585
30-Nov	160	$43	6880				15	$39	585
							160	$43	6880
Total Cost of Goods Sold = 3510 + 4400 + 1200 + 585 = 9695