Assume that the business in Exercise 7-9 maintains a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4.
Answer:
Inventory Unit Total Unit Total Total Quantity Cost Cost Quantity Cost Cost Quantity Unit Cost Cost 14,000 20.00 80,000 192,500 20.00 50,000 1,500 20.00 30,000 30 6,000 24.00 144,0001,500 20.00 30,000 6,000 24.00 144,000 24,500 24.00 108,000 1,500 20.00 30,000 1,500 24.00 36,000 15 1,000 25.00 25,0001,500 20.00 30,000 1,500 24.00 36,000 1,000 25.00 25,000 31 Balances 158,000 91,000