Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:

Inventory		Purchases		Sales
Dec. 1	3,200 units at $29	Dec. 10	1,600 units at $31	Dec. 12	2,240 units
		Dec. 20	1,440 units at $33	Dec. 14	1,920 units
				Dec. 31	960 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							fill in the blank c2dfe9f53fe6045_1	$fill in the blank c2dfe9f53fe6045_2	$fill in the blank c2dfe9f53fe6045_3
Dec. 10	fill in the blank c2dfe9f53fe6045_4	$fill in the blank c2dfe9f53fe6045_5	$fill in the blank c2dfe9f53fe6045_6				fill in the blank c2dfe9f53fe6045_7	fill in the blank c2dfe9f53fe6045_8	fill in the blank c2dfe9f53fe6045_9
							fill in the blank c2dfe9f53fe6045_10	fill in the blank c2dfe9f53fe6045_11	fill in the blank c2dfe9f53fe6045_12
Dec. 12				fill in the blank c2dfe9f53fe6045_13	$fill in the blank c2dfe9f53fe6045_14	$fill in the blank c2dfe9f53fe6045_15	fill in the blank c2dfe9f53fe6045_16	fill in the blank c2dfe9f53fe6045_17	fill in the blank c2dfe9f53fe6045_18
				fill in the blank c2dfe9f53fe6045_19	fill in the blank c2dfe9f53fe6045_20	fill in the blank c2dfe9f53fe6045_21
Dec. 14				fill in the blank c2dfe9f53fe6045_22	fill in the blank c2dfe9f53fe6045_23	fill in the blank c2dfe9f53fe6045_24	fill in the blank c2dfe9f53fe6045_25	fill in the blank c2dfe9f53fe6045_26	fill in the blank c2dfe9f53fe6045_27
Dec. 20	fill in the blank c2dfe9f53fe6045_28	fill in the blank c2dfe9f53fe6045_29	fill in the blank c2dfe9f53fe6045_30				fill in the blank c2dfe9f53fe6045_31	fill in the blank c2dfe9f53fe6045_32	fill in the blank c2dfe9f53fe6045_33
							fill in the blank c2dfe9f53fe6045_34	fill in the blank c2dfe9f53fe6045_35	fill in the blank c2dfe9f53fe6045_36
Dec. 31				fill in the blank c2dfe9f53fe6045_37	fill in the blank c2dfe9f53fe6045_38	fill in the blank c2dfe9f53fe6045_39	fill in the blank c2dfe9f53fe6045_40	fill in the blank c2dfe9f53fe6045_41	fill in the blank c2dfe9f53fe6045_42
							fill in the blank c2dfe9f53fe6045_43	fill in the blank c2dfe9f53fe6045_44	fill in the blank c2dfe9f53fe6045_45
Dec. 31	Balances					$fill in the blank c2dfe9f53fe6045_46			$fill in the blank c2dfe9f53fe6045_47

b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?

Periodic inventory by three methods; cost of goods sold

The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	40 units at $110
Mar. 10	Purchase	70 units at $120
Aug. 30	Purchase	30 units at $126
Dec. 12	Purchase	60 units at $130

There are 60 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Ending Inventory and Cost of Goods Sold

Inventory Method	Ending Inventory	Cost of Goods Sold
First-in, first-out (FIFO)	$fill in the blank 1	$fill in the blank 2
Last-in, first-out (LIFO)	fill in the blank 3	fill in the blank 4
Weighted average cost	fill in the blank 5	fill in the blank 6

Lower-of-Cost-or-Market Inventory

On the basis of the following data:

Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)
Model A	27	$57	$66
Model B	38	288	266
Model C	18	232	217
Model D	12	109	115
Model E	32	154	130

Determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9.

Inventory at the Lower of Cost or Market

Product	Total Cost	Total Market	Lower of Total Cost or Total Market
A	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
B	fill in the blank 4	fill in the blank 5	fill in the blank 6
C	fill in the blank 7	fill in the blank 8	fill in the blank 9
D	fill in the blank 10	fill in the blank 11	fill in the blank 12
E	fill in the blank 13	fill in the blank 14	fill in the blank 15
Total	$fill in the blank 16	$fill in the blank 17	$fill in the blank 18

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item Zeta9 are as follows:

Oct. 1		Inventory	74 units @ $23
7		Sale	53 units
15		Purchase	75 units @ $26
24		Sale	30 units

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)the cost of goods sold on October 24 and (b) the inventory on October 31.

a. Cost of goods sold on October 24
b. Inventory on October 31

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item 88-HX are as follows:

Jul. 1		Inventory	80 units @ $33
8		Sale	64 units
15		Purchase	89 units @ $37
27		Sale	75 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on Jul. 27 and (b) the inventory on Jul. 31.

a. Cost of goods sold on Jul. 27
b. Inventory on Jul. 31

Perpetual Inventory Using Weighted Average

Beginning inventory, purchases, and sales for WCS12 are as follows:

Oct. 1		Inventory	300 units at $8
13		Sale	175 units
22		Purchase	375 units at $10
29		Sale	280 units

a. Assuming a perpetual inventory system and using the weighted average cost method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. $ per unit

b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places. $

c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places. $

Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method.

The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	4	units at $28	$112
Aug. 13	Purchase	15	units at $29	435
Nov. 30	Purchase	12	units at $30	360
Available for sale		31	units	$907

There are 19 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar).

a.	First-in, first-out (FIFO)	$
b.	Last-in, first-out (LIFO)	$
c.	Weighted average cost