Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:

Inventory Purchases Sales
May 1 4,000 units at $35 May 10 2,000 units at $37 May 12 2,800 units
20 1,800 units at $39 14 2,400 units
31 1,200 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.

Schedule of Cost of Merchandise Sold
LIFO Method
Prepaid Cell Phones





Date



Quantity
Purchased


Purchases
Unit Cost


Purchases
Total Cost


Quantity
Sold Cost of
Merchandise
Sold
Unit Cost Cost of
Merchandise
Sold
Total Cost


Inventory
Quantity


Inventory
Unit Cost


Inventory
Total Cost
May 1 fill in the blank bf7198004004fd9_1
4,000
$fill in the blank bf7198004004fd9_2
35
$fill in the blank bf7198004004fd9_3
May 10 fill in the blank bf7198004004fd9_4
2,000
$fill in the blank bf7198004004fd9_5
37
$fill in the blank bf7198004004fd9_6
74,000
fill in the blank bf7198004004fd9_7
4,000
fill in the blank bf7198004004fd9_8
35
fill in the blank bf7198004004fd9_9
fill in the blank bf7198004004fd9_10
2,000
fill in the blank bf7198004004fd9_11
37
fill in the blank bf7198004004fd9_12
May 12 fill in the blank bf7198004004fd9_13
$fill in the blank bf7198004004fd9_14
$fill in the blank bf7198004004fd9_15
fill in the blank bf7198004004fd9_16
1,200
fill in the blank bf7198004004fd9_17
fill in the blank bf7198004004fd9_18
fill in the blank bf7198004004fd9_19
fill in the blank bf7198004004fd9_20
fill in the blank bf7198004004fd9_21
May 14 fill in the blank bf7198004004fd9_22
2,400
fill in the blank bf7198004004fd9_23
39
fill in the blank bf7198004004fd9_24
fill in the blank bf7198004004fd9_25
2,000
fill in the blank bf7198004004fd9_26
fill in the blank bf7198004004fd9_27
May 20 fill in the blank bf7198004004fd9_28
1,800
fill in the blank bf7198004004fd9_29
39
fill in the blank bf7198004004fd9_30
70,200
fill in the blank bf7198004004fd9_31
fill in the blank bf7198004004fd9_32
fill in the blank bf7198004004fd9_33
fill in the blank bf7198004004fd9_34
1,800
fill in the blank bf7198004004fd9_35
fill in the blank bf7198004004fd9_36
May 31 fill in the blank bf7198004004fd9_37
1,200
fill in the blank bf7198004004fd9_38
fill in the blank bf7198004004fd9_39
fill in the blank bf7198004004fd9_40
fill in the blank bf7198004004fd9_41
fill in the blank bf7198004004fd9_42
fill in the blank bf7198004004fd9_43
fill in the blank bf7198004004fd9_44
fill in the blank bf7198004004fd9_45
May 31 Balances $fill in the blank bf7198004004fd9_46
$fill in the blank bf7198004004fd9_47