Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

Units

Unit Cost

Unit Sales Price

Aug. 3

Sale

35

$63

Aug. 8

Purchase

70

$32

Aug. 21

Sale

65

77

Aug. 30

Purchase

25

47

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Aug. 1							45	$24	$1,080
3				35	$24	$840	10	$24	$240
8	70	$32	$2,240				10	$24	$240
							70	$32	$2,240
21				10	$24	$240
				55	$32	$1,760	15	$32	$480
30	25	$47	$1,175				15	$32	$480
							25	$47	$1,175
Totals	95		$3,415	100		$2,840	40		$1,655

Part 2

Requirement 2. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method.

Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Units	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Aug. 1
3
8
21
30
Totals