FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Topic Video
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Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
November 1 | Inventory | 120 units at $39 | |
10 | Sale | 90 units | |
15 | Purchase | 140 units at $40 | |
20 | Sale | 110 units | |
24 | Sale | 45 units | |
30 | Purchase | 160 units at $43 |
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.
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