LIFO perpetual inventory The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A. Date Transaction Number of Units Per Unit Total 1-Jan Inventory 2,500 $60 150,000 10 Purchase 7,500 68 510,000 28 Sale 3,750 120 450,000 30 Sale 1,250 120 150,000 5-Feb Sale 500 120 60,000 10 Purchase 18,000 70 1,260,000 16 Sale 9,000 125 1,125,000 28 Sale 8,500 125 1,062,500 5-Mar Purchase 15,000 71.6 1,074,000 14 Sale 10,000 125 1,250,000 25 Purchase 2,500 72 180,000 30 Sale 8,750 125 1,093,750 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record, using the last-in, first-out method. 2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost as of March 31, 2016. Warren, C. S., Reeve, J. M., & Duchac, J. (2016). Accounting(26 ed.). Boston, MA: Cengage Learning.
LIFO perpetual inventory
The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A.
|
Date |
Transaction |
Number of Units |
Per Unit |
Total |
|
1-Jan |
Inventory |
2,500 |
$60 |
150,000 |
|
10 |
Purchase |
7,500 |
68 |
510,000 |
|
28 |
Sale |
3,750 |
120 |
450,000 |
|
30 |
Sale |
1,250 |
120 |
150,000 |
|
5-Feb |
Sale |
500 |
120 |
60,000 |
|
10 |
Purchase |
18,000 |
70 |
1,260,000 |
|
16 |
Sale |
9,000 |
125 |
1,125,000 |
|
28 |
Sale |
8,500 |
125 |
1,062,500 |
|
5-Mar |
Purchase |
15,000 |
71.6 |
1,074,000 |
|
14 |
Sale |
10,000 |
125 |
1,250,000 |
|
25 |
Purchase |
2,500 |
72 |
180,000 |
|
30 |
Sale |
8,750 |
125 |
1,093,750 |
Instructions
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record, using the last-in, first-out method.
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
3. Determine the ending inventory cost as of March 31, 2016.
Warren, C. S., Reeve, J. M., & Duchac, J. (2016). Accounting(26 ed.). Boston, MA: Cengage Learning.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
