Question

Perpetual Inventory Using LIFO

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

Apr. 1		Inventory	77 units @ $41
10		Sale	52 units
15		Purchase	95 units @ $43
20		Sale	52 units
24		Sale	14 units
30		Purchase	31 units @ $45

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.

Answer 1

	Cost of goods purchase	Cost of goods sold	Ending inventory
Date	Units	Units cost	Total cost	Units	Unit cost	Total cost	Units	Unit cost	Total cost
Apr 1							77	41	3,157
Apr 10				52	41	2,132	25	41	1,025
Apr 15	95	43	4,085				25	41	1,025
						95	43	4,085
Apr 20				52	43	2,236	25	41	1,025
						43	43	1,849
Apr 24				14	43	602	25	41	1,025
						29	43	1,247
Apr 30	31	45					25	41	1,025
						29	43	1,247
						31	45	1,395

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