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 2,400
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:
| Inventory | Purchases | Sales | |||
| May 1 | 2,400 units at $22 | May 10 | 1,200 units at $24 | May 12 | 1,680 units |
| May 20 | 1,080 units at $26 | May 14 | 1,440 units | ||
| May 31 | 720 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 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.
| Schedule of Cost of Merchandise Sold | |||||||||
| LIFO Method | |||||||||
| Prepaid Cell Phones | |||||||||
| 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 | $ | $ | |||||||
| May 10 | $ | $ | |||||||
| May 12 | $ | $ | |||||||
| May 14 | |||||||||
| May 20 | |||||||||
| May 31 | |||||||||
| May 31 | Balances | $ | $ | ||||||
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0132162302
