Question

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 73 units at $99 10 Sale 48 units 15 Purchase 93 units at $105 20 Sale 53 units 24 Sale 13 units 30 Purchase 27 units at $111 The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of goods sold 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 DVD Players

Answer 1

Answer:

Sale - November 10

Cost of Sales

= 48 units × $99

= $4,752

Inventory Balance

=25 units × $99

=$2,475

Sale - November 15

Cost of Sales

=53 units × $105

= $5,565

Inventory Balance

40 units × $105       = $4,200

25 units × $99        = $ 2,475

Total                        = $6,675

Sale - November 24

Cost of Sales

= 13 units × $105

= $ 1,365

Inventory Balance

27 units × $105       = $ 2,835

25 units × $99        = $ 2,475

Total                        = $5,310

Explanation:

LIFO Inventory System sells the Recently Acquired Inventory First followed By Older Inventory Acquired.