Problem: LIFO Perpetual Inventory
The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period are as follows:
|
Date
|
Transaction
|
Number of Units
|
Per Unit
|
Total
|
|
Jan. 1
|
Inventory
|
2,500
|
$60.00
|
$150,000
|
|
10
|
Purchase
|
7,500
|
68.00
|
510,000
|
|
28
|
Sale
|
3,750
|
120.00
|
450,000
|
|
30
|
Sale
|
1,250
|
120.00
|
150,000
|
|
Feb. 5
|
Sale
|
500
|
$120.00
|
$60,000
|
|
10
|
Purchase
|
18,000
|
70.00
|
1,260,000
|
|
16
|
Sale
|
9,000
|
125.00
|
1,125,000
|
|
28
|
Sale
|
8,500
|
125.00
|
1,062,500
|
|
Mar. 5
|
Purchase
|
15,000
|
71.60
|
1,074,000
|
|
14
|
Sale
|
10,000
|
125.00
|
1,250,000
|
|
25
|
Purchase
|
2,500
|
72.00
|
180,000
|
|
30
|
Sale
|
8,750
|
125.00
|
1,093,750
|
Required:
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the last-in, first-out method. 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. Round unit cost to two decimal places, if necessary.
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
3. Determine the ending inventory cost as of March 31, 2016.