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Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,800 units at $31 May 10 20 900 units at $33 810 units at $35 May 12 1,260 units 14 1,080 units 31 540 units a. Assuming that the perpetual inventory system is used, costing by the LIFO 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. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Purchases Purchases Date Quantity Purchased Unit Cost Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost May 1 May 10 900 ✓ $ 33 29,700 May 12 May 14 May 20 May 31 May 31 Balances Feedback 1,260 X $ 35 X $ 44,100 X 1,080 ✔ 35 X 37,800 X ▼Check My Work a. Note that this exercise uses the perpetual inventory system. When the perpetual inventory system is used, revenue is recorded each time a sale is made along with an entry to record the cost of the merchandise sold. LIFO means the last units purchased are assumed to be the first to

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,800 units at $31 May 10 20 900 units at $33 810 units at $35 May 12 1,260 units 14 1,080 units 31 540 units a. Assuming that the perpetual inventory system is used, costing by the LIFO 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. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Purchases Purchases Date Quantity Purchased Unit Cost Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost May 1 May 10 900 ✓ $ 33 29,700 May 12 May 14 May 20 May 31 May 31 Balances Feedback 1,260 X $ 35 X $ 44,100 X 1,080 ✔ 35 X 37,800 X ▼Check My Work a. Note that this exercise uses the perpetual inventory system. When the perpetual inventory system is used, revenue is recorded each time a sale is made along with an entry to record the cost of the merchandise sold. LIFO means the last units purchased are assumed to be the first to

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 3E: Perpetual inventory using FIFO Beginning inventory, purchases, and sales data for DVD players are as...
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Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,800 units at $31 May 10 20 900 units at $33 810 units at $35 May 12 1,260 units 14 1,080 units 31 540 units a. Assuming that the perpetual inventory system is used, costing by the LIFO 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. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Purchases Purchases Date Quantity Purchased Unit Cost Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost May 1 May 10 900 ✓ $ 33 29,700 May 12 May 14 May 20 May 31 May 31 Balances Feedback 1,260 X $ 35 X $ 44,100 X 1,080 ✔ 35 X 37,800 X ▼Check My Work a. Note that this exercise uses the perpetual inventory system. When the perpetual inventory system is used, revenue is recorded each time a sale is made along with an entry to record the cost of the merchandise sold. LIFO means the last units purchased are assumed to be the first to
Transcribed Image Text:Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,800 units at $31 May 10 20 900 units at $33 810 units at $35 May 12 1,260 units 14 1,080 units 31 540 units a. Assuming that the perpetual inventory system is used, costing by the LIFO 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. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Purchases Purchases Date Quantity Purchased Unit Cost Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost May 1 May 10 900 ✓ $ 33 29,700 May 12 May 14 May 20 May 31 May 31 Balances Feedback 1,260 X $ 35 X $ 44,100 X 1,080 ✔ 35 X 37,800 X ▼Check My Work a. Note that this exercise uses the perpetual inventory system. When the perpetual inventory system is used, revenue is recorded each time a sale is made along with an entry to record the cost of the merchandise sold. LIFO means the last units purchased are assumed to be the first to
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