Instructions (FILL IN ALL BLANKS) Required: 1. Record the inventory, purchases,
ID: 2418243 • Letter: I
Question
Instructions (FILL IN ALL BLANKS)
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.
LIFO Perpetual Inventory The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period are as follows: Number of Units 2,500 7,500 3,750 1,250 500 18,000 9,000 8,500 15,000 10,000 2,500 8,750 Date Transactionn Per Unit Total $150,000 510,000 450,000 150,000 60,000 1,260,000 1,125,000 1,062,500 1,074,000 1,250,000 180,000 1,093,750 Jan. 1 Inventory $60.00 68.00 120.00 120.00 $120.00 70.00 125.00 125.00 71.60 125.00 72.00 125.00 10 Purchase 28 Sale 30 Sale Feb. 5 Sale 10 Purchase 16 Sale 28 Sale Mar. 5 Purchase 14 Sale 25 Purchase 30 SaleExplanation / Answer
1.
Funky Party Supplies
Schedule of cost of merchandise sold for the year three months ended march31, 2016
LIFO method
Purchases Cost of merchandise sold Balances
2500
7500
60
68
150000
510000
2500
3750
60
68
150000
255000
2500
2500
60
68
150000
170000
2500
2000
60
68
150000
136000
2500
2000
18000
60
68
70
150000
136000
1260000
2500
2000
9000
60
68
70
150000
136000
630000
2500
2000
500
60
68
70
150000
136000
35000
2500
2000
500
15000
60
68
70
71.6
150000
136000
35000
1074000
2500
2000
500
5000
60
68
70
71.6
150000
136000
35000
358000
2500
2000
500
5000
2500
60
68
70
71.6
72
150000
136000
35000
358000
180000
2500
5000
500
750
72
71.6
70
68
180000
358000
35000
51000
2500
1250
60
68
150000
85000
2. Total sales :
3750 units * 120 = 450000
1250 * 120 = 150000
500 * 120 = 60000
9000 * 125 = 1125000
8500 * 125 = 1062500
10000 * 125 = 1250000
8750 * 125 = 1093750
total sales = 5191250
total cost of goods sold = 2939000
Gross profit = sales - cost of goods sold
= 5191250 - 2939000 = 2252250
3. Ending inventory :
2500 units @60 = 150000
1250 units @68 = 85000.
Date Quantity Unitcost Totalcost Quantity Unitcost Totalcost Quantity Unitcost Total cost jan1 2500 60 150000 10 7500 68 5100002500
7500
60
68
150000
510000
28 3750 68 2550002500
3750
60
68
150000
255000
30 1250 68 850002500
2500
60
68
150000
170000
feb5 500 68 340002500
2000
60
68
150000
136000
10 18000 70 12600002500
2000
18000
60
68
70
150000
136000
1260000
16 9000 70 6300002500
2000
9000
60
68
70
150000
136000
630000
28 8500 70 5950002500
2000
500
60
68
70
150000
136000
35000
5 15000 71.6 10740002500
2000
500
15000
60
68
70
71.6
150000
136000
35000
1074000
14 10000 71.6 7160002500
2000
500
5000
60
68
70
71.6
150000
136000
35000
358000
25 2500 72 1800002500
2000
500
5000
2500
60
68
70
71.6
72
150000
136000
35000
358000
180000
302500
5000
500
750
72
71.6
70
68
180000
358000
35000
51000
2500
1250
60
68
150000
85000