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.

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Asked Oct 31, 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.

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Expert Answer

Step 1

Perpetual Inventory System:

 Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases, and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Step 2

Last-in-First-Out (LIFO):

In this method, items purchased recently are sold first. So, the value of the endi...

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