Question
Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 2,900 units at $34 Dec.
Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:
| Inventory | Purchases | Sales | |||
| Dec. 1 | 2,900 units at $34 | Dec. 10 | 1,450 units at $36 | Dec. 12 | 2,030 units |
| Dec. 20 | 1,305 units at $38 | Dec. 14 | 1,740 units | ||
| Dec. 31 | 870 units |
a. Assuming that the perpetual inventory system is used, costing by the LIFO 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.
| Schedule of Cost of Goods Sold | |||||||||
| LIFO Method | |||||||||
| Prepaid Cell Phones | |||||||||
| 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 |
| Dec. 1 | |||||||||
| Dec. 10 | |||||||||
| Dec. 12 | |||||||||
| Dec. 14 | |||||||||
| Dec. 20 | |||||||||
| Dec. 31 | |||||||||
| Dec. 31 | Balances | ||||||||
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Financial Markets And Institutions
Authors: Peter Howells, Keith Bain
5th Edition
0273709194, 9780273709190
