PE 7-3A Perpetual inventory using LIFO

Beginning inventory, purchases, and sales for Item QED9 are as follows:

Nov. 1 Inventory 90 units at $50
 4 Sale 72 units
23 Purchase 100 units at $60
26 Sale 84 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on November 26 and (b) the inventory on November 30.

Answer:
a. Cost of merchandise sold (November 26):
  $5,040 = (84 units × $60)  

b. Inventory, November 30:
  18 units @ $50 $ 900
  16 units @ $60    960
  34                     $1,860

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