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Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:

a$.$ Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods sold for each sale and the inventory balance after each sale,

presenting the data in the form illustrated in Exhibit $4.$ Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of

Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

Schedule of Cost of Goods Sold

LIFO Method

Prepaid Cell PhonesSchedule of Cost of Goods Sold

LIFO Method

Prepaid Cell Phones

b$.$ Based upon the preceding data, would you expect the inventory to be higher or lower using the first$-$in$,$ first$-$out method?Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:

a$.$ Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods sold for each

presenting the data in the form illustrated in Exhibit $4.$ Under LIFO, if units are in inventory at two different costs, enter the units

Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

Schedule of Cost of Goods Sold

LIFO Method

Prepaid Cell Phones

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