Perpetual inventory using LIFO

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

Inventory

Dec. $1,310$ units at $$88$

Purchases

Dec. $10,144$ units at $$90$

$20,240$ units at $$96$

Sales

Dec. $12,240$ units

$14,166$ units

$31,200$ units

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 Phones

Cost of Cost of

Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Unit Cost Total Cost

Schedule of Cost of Goods Sold

LIFO Method

Prepaid Cell Phones

Cost of Cost of

Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory

Date

Purchased Unit Cost Total Cost Sold

Unit Cost Total Cost Quantity Unit Cost Total Cost

Dec. $1$

$\backslash$table$[[310,88,27,280]]$

Dec. $10$

Dec. $12$

Dec. $14$

Dec. $20$

Dec. $31$

Dec. $31$ Balances

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a$.$ Note that this exercise uses the perpetual inventory system. When the perpetual inventory system is used, revenue is recorded each time a sale is made along with an entry to record the cost of the merchandise sold. LIFO means the last units purchased are assumed to be the first to be sold. Therefore after each sale, the remaining or ending