EX 7-4 Perpetual inventory using LIFO

Assume that the business in Exercise 7-3 maintains a perpetual inventory system, costing by the last-in, first-out 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.

Answer:
Portable Video Players  Purchases Cost of Merchandise Sold Inventory  
Date  
Quantity 
Unit Cost 
Total Cost  
Quantity 
Unit Cost 
Total Cost  
Quantity 
Unit Cost 
Total Cost June 1        75  40  3,000  6     60  40  2,400  15  40  600  14  90  42  3,780     15  90  40  42  600  3,780  19     50  42  2,100  15  40  40  42  600  1,680  25     20    42    840    15  20  40  42  600  840  30  80  45  3,600     15  20         80  40  42       45  600  840    3,600  30 Balances     5,340     5,040 

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