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Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 8 8 - H x are as follows: Assuming a perpetual inventory system and
Perpetual inventory using LIFO
Beginning inventory, purchases, and sales for Item are as follows:
Assuming a perpetual inventory system and using the lastin firstout LIFO method, determine a the cost of goods sold on July and b the
inventory on July
a Cost of goods sold on July
b Inventory on July
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a When the LIFO method is used, the cost of the units sold is the cost of the most recent purchases. Think of your inventory in terms of
"layers." Determine how much inventory remains from each layer after each sale.
b The ending inventory is made up of the oldest purchases.
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