Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable game players are...
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Accounting
Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for portable game players are as follows:
Apr. 1
Inventory
66 units @ $57
10
Sale
44 units
15
Purchase
79 units @ $60
20
Sale
43 units
24
Sale
13 units
30
Purchase
30 units @ $64
The business maintains a perpetual inventory system, costing by the last-in, first-out method.
Determine the cost of merchandise 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 Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
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