May 1 200 units at $40 Purchases May 10 beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: taventory May 20 2,100 units at $42 1,990 units at $44 Sales May 12 2.940 units May 14 May 31 1,260 units 2,520 units a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form Bustrated in b 4. Under LIFO, units are in inventory at two different costs, enter the units with the HOGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Date Quantity Purchased Purchases Unit Purchases Total Quantity Cost Cost Sold Cost of Merchandise Sold Unit Cest Cost of Merchandise Seld Total Investory Inventory Unit Inventory Total Cost Quantity Cast Cast May 1 May 10 May 12 May 14 May 20 May 31 Balances 31 b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? 00 000 0000 00000 0000 00000 0000 000000 Mest Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 4,200 units at $40 May 10 May 20 2,100 units at $42 May 12 2,940 units 1,890 units at $44 May 14 May 31 1,260 units 2,520 units a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale presenting the data in the form Mustrated in Exhibits Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchand Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Date Quantity Purchased Purchases Unit Cost May 1 May 10 May 12 May 14 May Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost D D 000 000 Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Inventory Unit Cost Total Cost 000 000000 00000 Schedule of Cost of Merenainfalda Sold LIFO Method Prepaid Cell Phones Sold Unit Cost Cost of Merchandise Sold Total Cost Quantity Purchases Date Purchased Unit Cost Purchases Total Cost Quantity Cost of Merchandise Sold May 1 May 10 May 12 May 14 May 20 May 31 0 000 000 Inventory Inventory Inventory Quantity Unit Cost Total Cost 000000000 000000000 000 0 Q May 31 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? 0000000000 Previous Next