Perpetual Inventory Using LIFO

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

Inventory		Purchases		Sales
Dec. 1	2,400 units at $33	Dec. 10	1,200 units at $35	Dec. 12	1,680 units
		Dec. 20	1,080 units at $37	Dec. 14	1,440 units
				Dec. 31	720 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 2,400 $ 33 $ 79,200 Dec. 10 1,200 $ 35 $ 42,000 2,400 79,200 33 35 1,200 42,000 Dec. 12 $ $ 42,000 2,280 X ( 33 75,240 x 1,200 120 1,440 35 33 3 3,960 x Dec. 14 3 47,520 840 x 33 27,720 x Dec. 20 1,080 / 37 39,960 840 X 27,720 x 1,080 720 x 37 37 33 Dec. 31 39,960 27,720 26,640 840 360 37 13,320 Dec. 31 Balances $ 120,120 x $ 41,040