Question

# Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable DVD players are as...

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 \$ \$

#### Homework Answers

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
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