Question

Perpetual Inventory Using LIFO

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

Apr. 1		Inventory	47 units @ $80
10		Sale	34 units
15		Purchase	61 units @ $85
20		Sale	34 units
24		Sale	10 units
30		Purchase	37 units @ $89

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

LIFO:

Schedule of Cost of Merchandise Sold
LIFO Method
Portable Game Players
Date	quantity purchase	Unit cost	Purchase Cost	Quantity sold	Unit cost	Cost of merchandise sold	Ending inventory	Unit cost	Cost of ending inventory
Apr 1							47	80	3760
Apr 10				34	80	2720	13	80	1040
Apr 15	61	85	5185				13 61	80 85	1040 5185
Apr 20				34	85	2890	13 27	80 85	1040 2295
Apr 24				10	85	850	13 17	80 85	1040 1445
Apr 30	37	89	3293				13 17 37	80 85 89	1040 1445 3293
Apr 30	Balances					6460			5778