PR 7-2A LIFO perpetual inventory

The beginning inventory at RTE Office Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A.

Instructions
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.

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

3. Determine the ending inventory cost as of August 31, 2014.


Answer:




2. Total sales……………………………………………………………………………
Total cost of merchandise sold……………………………………………………
$483,800 *
293,900
Gross profit…………………………………………………………………………… $189,900
*$483,800 = $37,500 + $13,000 + $5,500 + $100,800 + $102,000 + $120,000 + $105,000


3. $23,500 = [(500 units × $30) + (250 units × $34)] = $15,000 + $8,500

Purchases Cost of Merchandise Sold Inventory
Quantity
Unit
Cost
Total
Cost Quantity
Unit
Cost
Total
Cost Quantity
Unit
Cost
Total
Cost
June 1 500 30.00 15,000
10 1,500 34.00 51,000 500
1,500
30.00
34.00
15,000
51,000
28 750 34.00 25,500 500
750
30.00
34.00
15,000
25,500
30 250 34.00 8,500 500
500
30.00
34.00
15,000
17,000
July 5 100 34.00 3,400 500
400
30.00
34.00
15,000
13,600
10 3,600 35.00 126,000 500
400
3,600
30.00
34.00
35.00
15,000
13,600
126,000
16 1,800 35.00 63,000 500
400
1,800
30.00
34.00
35.00
15,000
13,600
63,000
28 1,700 35.00 59,500 500
400
100
30.00
34.00
35.00
15,000
13,600
3,500
Aug. 5 3,000 35.80 107,400 500
400
100
3,000
30.00
34.00
35.00
35.80
15,000
13,600
3,500
107,400
14 2,000 35.80 71,600 500
400
100
1,000
30.00
34.00
35.00
35.80
15,000
13,600
3,500
35,800
25 500 36.00 18,000 500
400
100
1,000
500
30.00
34.00
35.00
35.80
36.00
15,000
13,600
3,500
35,800
18,000
30 500
1,000
100
150
36.00
35.80
35.00
34.00
18,000
35,800
3,500
5,100
500
250
30.00
34.00
15,000
8,500
31 Balances 293,900 23,500
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