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Homework: Chapter $6$

Perpetual inventory using LIFO

Beginning inventory, purchases, and sales for Item $88-Hx$ are as follows:

July $1$ Inventory

$86$ units @ $$22$

July $8$ Sale

$69$ units

July $15$ Purchase

$95$ units @ $$26$

July $27$ Sale

$80$ units

Assuming a perpetual inventory system and using the last$-$in$,$ first$-$out $($LIFO$)$ method, determine $($a$)$ the cost of goods sold on July $27$ and $($b$)$ the inventory on July $31.$

a$.$ Cost of goods sold on July $27$

b$.$ Inventory on July $31x$

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When the LIFO method is used, the cost of the units sold is the cost of the most recent purchases. $...$ink of your inventory in terms of "layers." Determine how much inventory remains from each layer after each sale.

b$.$ The ending inventory is made up of the oldest purchases.

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