Question
Beginning inventory, purchases, and sales data for DVD players are as follows: Date Line Item Description Units and Cost Nov. 1 Inventory 39 units at
Beginning inventory, purchases, and sales data for DVD players are as follows:
| Date | Line Item Description | Units and Cost |
|---|---|---|
| Nov. 1 | Inventory | 39 units at $40 |
| 10 | Sale | 31 units |
| 15 | Purchase | 51 units at $42 |
| 20 | Sale | 29 units |
| 24 | Sale | 7 units |
| 30 | Purchase | 37 units at $45 |
The business maintains a perpetual inventory system, costing by the last-in, first-out method.
Determine the cost of goods 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
| Date | Quantity Purchased | Purchases Unit Cost | Purchases Total Cost | Quantity Sold | Cost of Goods Sold Unit Cost | Cost of Goods Sold Total Cost | Inventory Quantity | Inventory Unit Cost | Inventory Total Cost |
|---|---|---|---|---|---|---|---|---|---|
| Nov. 1 | Nov. 1 | Nov. 1 | Nov. 1 | ||||||
| Nov. 10 | Nov. 10 | Nov. 10 | Nov. 10 | Nov. 10 | Nov. 10 | Nov. 10 | |||
| Nov. 15 | Nov. 15 | Nov. 15 | Nov. 15 | Nov. 15 | Nov. 15 | Nov. 15 | |||
| fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | |||||||
| Nov. 20 | Nov. 20 | Nov. 20 | Nov. 20 | Nov. 20 | Nov. 20 | Nov. 20 | |||
| fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | |||||||
| Nov. 24 | Nov. 24 | Nov. 24 | Nov. 24 | Nov. 24 | Nov. 24 | Nov. 24 | |||
| fill in the blank 34 | fill in the blank 35 | fill in the blank 36 | |||||||
| Nov. 30 | Nov. 30 | Nov. 30 | Nov. 30 | Nov. 30 | Nov. 30 | Nov. 30 | |||
| fill in the blank 43 | fill in the blank 44 | fill in the blank 45 | |||||||
| fill in the blank 46 | fill in the blank 47 | fill in the blank 48 | |||||||
| Nov. 30 | Balances | Nov. 30 | Nov. 30 |
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A Journey Into Auditing Culture
Authors: Grant Thornton United Kingdom, Susan Jex, Eddie J. Best
1st Edition
1634540565, 978-1634540568
