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What am I missing on the highlighted area of this question? I got the highlighted portion wrong. Perpetual Inventory Using LIFO Beginning inventory, purchases, and
What am I missing on the highlighted area of this question? I got the highlighted portion wrong.
Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Purchases Sales Inventory Dec. 1 3,100 units at $32 Dec. 10 Dec. 12 2,170 units 1,550 units at $34 1,395 units at $36 Dec. 20 Dec. 14 1,860 units Dec. 31 930 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. 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 Unit Cost Inventory Quantity 3,100 Inventory Total Cost Dec. 1 $ 32 99,200 Dec. 10 De 1.550 1,550 3 34 52.700 52,700 3,100 32 99,200 1.550 52,700 Dec. 12 1,550 $ 34 52,700 2,480 79,360 620 32 19,840 1,860 32 59,520 Dec. 14 Dec. 930 32 1,395 36 20 50,220 930 1,395 50,220 Dec. 31 930 930 36 33,480 930 465 36 16,740 Dec. Balances 31 b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? HigherStep by Step Solution
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