FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Topic Video
Question
LIFO Perpetual Inventory
The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows:
Number
of Units
Date Transaction
Apr. 3
Inventory
8 Purchase
Sale
Sale
11
30
May 8
10
19
28
June 5
16
21
28
Purchase
Date
Sale
Sale
Purchase
Sale
Sale
Purchase
Sale
84
168
113
Quantity
71
140
84
42
140
84
112
252
126
Per Unit Total
$225
270
750
750
300
750
750
330
790
790
360
790
Required:
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 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.
Rhodes Co.
Perpetual Inventory Account
LIFO Method
For the three-months ended June 30
Cost of Merchandise Sold
Unit Cost
$18,900
45,360
84,750
53,250
42,000
Purchases
Unit Cost
63,000
31,500
46,200
66,360
88,480
90,720
99,540
Total Cost
Quantity
Total Cost
Quantity
Inventory
Unit Cost
Total Cost
expand button
Transcribed Image Text:LIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number of Units Date Transaction Apr. 3 Inventory 8 Purchase Sale Sale 11 30 May 8 10 19 28 June 5 16 21 28 Purchase Date Sale Sale Purchase Sale Sale Purchase Sale 84 168 113 Quantity 71 140 84 42 140 84 112 252 126 Per Unit Total $225 270 750 750 300 750 750 330 790 790 360 790 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 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. Rhodes Co. Perpetual Inventory Account LIFO Method For the three-months ended June 30 Cost of Merchandise Sold Unit Cost $18,900 45,360 84,750 53,250 42,000 Purchases Unit Cost 63,000 31,500 46,200 66,360 88,480 90,720 99,540 Total Cost Quantity Total Cost Quantity Inventory Unit Cost Total Cost
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education