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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Perpetual Inventory using LIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
140 units at $29
110 units
150 units at $30
120 units
Nov. 1 Inventory
10 Sale
15 Purchase
20 Sale
24 Sale
30 Purchase
The business maintains a perpetual inventory system, costing by the last-in, first-out method.
Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrate
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
Unit Cost column.
Date
Nov. 1
Nov. 10
Nov. 15
Nov. 20
35 units
140 units at $34
LIFO Method
DVD Players
Cost of
Cost of
Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory
Purchased Unit Cost Total Cost Sold Unit Cost
Total Cost Quantity Unit Cost Total Cost
0
00

Transcribed Image Text:20 Sale
24 Sale
30 Purchase
The business maintains a perpetual inventory system, costing by the last-in, first-out 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.
Date
Nov. 1
Nov. 10
Nov. 15.
Quantity Purchases Purchases Quantity
Purchased Unit Cost Total Cost
Sold
Nov, 201
Nov. 24
Nov. 30
0
120 units
35 units
140 units at $34
0
Nov. 30 Balances
LIFO Method
DVD Players
0
0
Cost of
Cost of
Goods Sold Goods Sold Inventory Inventory Inventory
Unit Cost Total Cost Quantity Unit Cost Total Cost
888
0
00000000
888
Nave
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