Hercula Cycles started May with 12 bicycles that cost $42 each. On May 16, Hercula purchased 40 bicycles at $68 each On May 31, Hercula sold 29 bicycles for $95 each
Requirements
1. Prepare Hercula Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method
2. Journalize the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account.
Requiramont 1. Prepare Hercula Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions
have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (For cost of goods sold, enter the first layer
out under LIFO costing first. For inventory on hand, enter the oldest inventory layer first. Abbreviation used QTY Quantity, Tot Total)
Hercule Cycles
Date | Purchases | Cost of Goods Sold | Inventory on Hand
---|---|---|---
| QTY Unit Cost Tot Cost | QTY Unit Cost Tot. Cost | QTY Unit Cost Tot Cost
May 1 | | | 12 $ 42 $ 504
May 16 | 40 $ 68 $ 2,720 | | 12 $ 42 $ 504 40 $ 68 $ 2,720
May 31 | | |
