Question

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item PK95 are as follows:

January 1		Inventory	110 units @ $17
5		Sale	88 units
11		Purchase	122 units @ $19
21		Sale	102 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on January 21 and (b) the inventory on January 31.

a. Cost of merchandise sold on January 21	$
b. Inventory on January 31	$

PLEASE SHOW WORK

Answer 1

	Available for sale			Cost of goods sold			Ending Inventory
Date	Units	Unit cost	Total Cost	Units	Unit cost	Total Cost	Units	Unit Cost	Total Cost
Jan-01							110	17	1,870
Jan-05				88	17	1,496	22	17	374
Jan-11	122	19	2,318				22	17	374
							122	19	2,318
Jan-21				102	19	1,938	22	17	374
							20	19	380
Total						3,434			754

Cost of merchandise sold on January 21 = $1,938

a. Cost of merchandise sold on January 21	$1,938
b. Inventory on January 31	$754

Kindly comment if you need further assistance.

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