Question
A Company started business on January 1, 20X1, and had the following activity in the purchases journal and sales journal. As this is the first
A Company started business on January 1, 20X1, and had the following activity in the purchases journal and sales journal. As this is the first year of the company's operations, the beginning inventory balance is zero.
Purchases journal
| Date | Cost | Quantity | Total |
| January 1 | $ 4,000 | 70 | $ 280,000 |
| February 28 | $ 4,120 | 133 | $ 547,960 |
| May 31 | $ 4,200 | 112 | $ 470,400 |
| July 31 | $ 4,240 | 97 | $ 411,280 |
| October 31 | $ 4,320 | 98 | $ 423,360 |
| December 31 | $ 4,400 | 18 | $ 79,200 |
| Totals | 528 | $ 2,212,200 |
Sales journal
| Date | Sales price | Quantity | Total |
| January 31 | $ 5,000 | 49 | $245,000 |
| March 31 | $ 5,000 | 92 | $460,000 |
| April 30 | $ 5,000 | 32 | $160,000 |
| June 30 | $ 5,000 | 70 | $350,000 |
| August 30 | $ 5,000 | 101 | $505,000 |
| November 30 | $ 5,000 | 80 | $400,000 |
| December 15 | $ 5,000 | 34 | $170,000 |
| Totals | 458 | $ 2,290,000 |
What is the inventory balance under LIFO perpetual?
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Accounting Research In The United States The Euro Zone And Beyond
Authors: Aida Sy
0988919362, 978-0988919365
