Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are
Question:
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:
Inventory | Purchases | Sales | |||
May 1 | 3,700 units at $30 | May 10 | 1,850 units at $32 | May 12 | 2,590 units |
May 20 | 1,665 units at $34 | May 14 | 2,220 units | ||
May 31 | 1,110 units |
Question Content Area
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 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 Merchandise 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 Merchandise Sold Unit Cost | Cost of Merchandise Sold Total Cost | Inventory Quantity | Inventory Unit Cost | Inventory Total Cost |
May 1 | fill in the blank fce126fd9007fa3_1 | $fill in the blank fce126fd9007fa3_2 | $fill in the blank fce126fd9007fa3_3 | ||||||
May 10 | fill in the blank fce126fd9007fa3_4 | $fill in the blank fce126fd9007fa3_5 | $fill in the blank fce126fd9007fa3_6 | fill in the blank fce126fd9007fa3_7 | fill in the blank fce126fd9007fa3_8 | fill in the blank fce126fd9007fa3_9 | |||
fill in the blank fce126fd9007fa3_10 | fill in the blank fce126fd9007fa3_11 | fill in the blank fce126fd9007fa3_12 | |||||||
May 12 | fill in the blank fce126fd9007fa3_13 | $fill in the blank fce126fd9007fa3_14 | $fill in the blank fce126fd9007fa3_15 | fill in the blank fce126fd9007fa3_16 | fill in the blank fce126fd9007fa3_17 | fill in the blank fce126fd9007fa3_18 | |||
fill in the blank fce126fd9007fa3_19 | fill in the blank fce126fd9007fa3_20 | fill in the blank fce126fd9007fa3_21 | |||||||
May 14 | fill in the blank fce126fd9007fa3_22 | fill in the blank fce126fd9007fa3_23 | fill in the blank fce126fd9007fa3_24 | fill in the blank fce126fd9007fa3_25 | fill in the blank fce126fd9007fa3_26 | fill in the blank fce126fd9007fa3_27 | |||
May 20 | fill in the blank fce126fd9007fa3_28 | fill in the blank fce126fd9007fa3_29 | fill in the blank fce126fd9007fa3_30 | fill in the blank fce126fd9007fa3_31 | fill in the blank fce126fd9007fa3_32 | fill in the blank fce126fd9007fa3_33 | |||
fill in the blank fce126fd9007fa3_34 | fill in the blank fce126fd9007fa3_35 | fill in the blank fce126fd9007fa3_36 | |||||||
May 31 | fill in the blank fce126fd9007fa3_37 | fill in the blank fce126fd9007fa3_38 | fill in the blank fce126fd9007fa3_39 | fill in the blank fce126fd9007fa3_40 | fill in the blank fce126fd9007fa3_41 | fill in the blank fce126fd9007fa3_42 | |||
fill in the blank fce126fd9007fa3_43 | fill in the blank fce126fd9007fa3_44 | fill in the blank fce126fd9007fa3_45 | |||||||
May 31 | Balances | $fill in the blank fce126fd9007fa3_46 | $fill in the blank fce126fd9007fa3_47 |
Question Content Area
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?
HigherLower