Perpetual inventory using LIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

Nov. $1$ Inventory $80$ units at $$64$

$10$ Sale $60$ units

$15$ Purchase $,103$ units at $$67$

$20$ Sale $60$ units

$24$ Sale $,14$ units

$30$ Purchase $,37$ units at $$71$

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.

LIFO Method

DVD Players

Date

Quantity

Purchases Purchases

Quantity

Cost of

Cost of

Sold

Unit Cost Total Cost

Inventory

Inventory

Inventory

Unit Cost Total Cost

Nov. $1$

Nov. $10$

$60$

$$

$64$

$3,840$

Next