# Perpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for DVD players are as follows:November 1 Inventory120 units at \$3910 Sale90 units15 Purchase140 units at \$4020 Sale110 units24 Sale45 units30 Purchase160 units at \$43The 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.Schedule of Cost of Goods SoldLIFO MethodDVD PlayersDateQuantity PurchasedPurchases Unit CostPurchases Total CostQuantity SoldCost of Goods Sold Unit CostCost of Goods Sold Total CostInventory QuantityInventory Unit CostInventory Total CostNov. 1       \$\$Nov. 10    \$\$   Nov. 15 \$\$                Nov. 20                   Nov. 24                   Nov. 30                             Nov. 30Balances    \$  \$

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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.

 Schedule of Cost of Goods Sold LIFO Method DVD Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Nov. 1 \$ \$ Nov. 10 \$ \$ Nov. 15 \$ \$ Nov. 20 Nov. 24 Nov. 30 Nov. 30 Balances \$ \$
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Step 1

Under LIFO method, the concept of last in first out is used. Here, the inventory purchased in last will be sold first. The ending inventory includes the goods of opening inventory or the goods purchased first.

Step 2

Cost of goods sold & inventory bal...

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