Question

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item PK95 are as follows: October 1 Inventory 80 units @ $31 5 Sale 64 units 11 Purchase 89 units @ $33 21 Sale 75 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on October 21 and (b) the inventory on October 31. a. Cost of merchandise sold on October 21 b. Inventory on October 31

Answer 1

following Lito method la Cost of Cost of me Merchandise sold on Octoberal Tito Method a In this method, it is assumed that Goods which are Last Purchased are Hirstly Gols aut for Production or sale as the name of this methed Suggest on Cost of merchandise Cast Purchase sold mele oct al is frou 11 october @33 per unit on Cost of merchandise Cold on oct al = $33x 75 2 B 2 475 (6) Inventon on oct 31. Inventory Remaining from aut a Euventory ) 80-64 units = 16 units Inventory remaining from October 11 Luventory - 89-75 a 14 units- Total cost of Inventory = 16x31 - 14x33 - $496 8 462 $9580