Determine the ending inventory cost as of march

Assignment Help Accounting Basics

Reference no: EM131902047

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.

Reference no: EM131902047

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