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Perpetual inventory using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Date Units and Cost Dec.
Perpetual inventory using LIFO
Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:
Inventory
Date Units and Cost
Dec. units at $
Purchases
Date Units and Cost
Dec. units at $
units at $
Sales
Date Units
Dec. units
units
units
Question Content Area
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 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. Dec.
Dec.
Dec.
Dec. Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
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Dec. Balances Dec.
Dec.
Question Content Area
b Based upon the preceding data, would you expect the inventory to be higher or lower using the firstin firstout m
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Intermediate Accounting Volume 2
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
8th Edition
1260881245, 9781260881240
