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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Asked Nov 30, 2019
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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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Expert Answer

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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Schedule of cost of goods sold LIFO method DVD players Cost of goods sold Units Date Goods purchased Units per unit Inventory balance Units Total Total Total Cost Cost Cost cost cost cost per unit per unit (S) 39 (S) (S) (S) 120 4,680 Nov 1 Nov 90 1,170 39 3,510 30 39 10 140 5,600 1,170 40 30 Nov 15 39 5,600 40 140 4,400 1,170 40 30 39 Nov 110 20 30 1,200 40 30 1,200 585 Nov 24 40 15 39 15 39 585 6,880 585 160 43 39 Nov 30 15 43 6,880 160 Νοv 30 9,695 7,465 eni

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