Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases May 10 Sales May 12 May 1 2,700 units at $37 1,350 units at $39 1,890 units 1,620 units 20 1,215 units at $41 14 31 810 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. Und 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 Cost of Cost of Merchandise Sold Merchandise Sold Purchases Purchases Quantity Unit Cost Total Cost Sold Unit Cost Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost Quantity Date Purchased May 1 2.700 99,900 37 37 May 10 1.350 39 52,650 2,700 99,900 1.350 39 52.650 May 12 1.350 39 May 14 May 20 May 31 May 31 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? 0 000 00 52.650
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases May 10 Sales May 12 May 1 2,700 units at $37 1,350 units at $39 1,890 units 1,620 units 20 1,215 units at $41 14 31 810 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. Und 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 Cost of Cost of Merchandise Sold Merchandise Sold Purchases Purchases Quantity Unit Cost Total Cost Sold Unit Cost Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost Quantity Date Purchased May 1 2.700 99,900 37 37 May 10 1.350 39 52,650 2,700 99,900 1.350 39 52.650 May 12 1.350 39 May 14 May 20 May 31 May 31 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? 0 000 00 52.650
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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erpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:
Inventory | Purchases | Sales | |||
May 1 | 2,700 units at $37 | May 10 | 1,350 units at $39 | May 12 | 1,890 units |
20 | 1,215 units at $41 | 14 | 1,620 units | ||
31 | 810 units |
Question Content Area
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.
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