50.1K

Verified Solution

Link Copied!

LIFO Perpetual Inventory

The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Date		Transaction	Number of Units	Per Unit	Total
Apr. 3		Inventory	60		$150		$9,000
8		Purchase	120		180		21,600
11		Sale	80		500		40,000
30		Sale	50		500		25,000
May 8		Purchase	100		200		20,000
10		Sale	60		500		30,000
19		Sale	30		500		15,000
28		Purchase	100		220		22,000
June 5		Sale	60		525		31,500
16		Sale	80		525		42,000
21		Purchase	180		240		43,200
28		Sale	90		525		47,250

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, 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.

Rhodes Co. Perpetual Inventory Account LIFO Method For the three-months ended June 30
	Purchases	Cost of Merchandise Sold	Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Apr. 3
Apr. 8
Apr. 11
Apr. 30
May 8
May 10
May 19
May 28
June 5
June 16
June 21
June 28
June 30	Balances

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

Total sales
Total cost of merchandise sold
Gross profit

3. Determine the ending inventory cost on June 30. $

Answer & Explanation Solved by verified expert

See Answer