SOLUTION: You are the store manager at a local Best Buy. As manager, you are verifying the store�s December inventory sales and purchases. You are currently focusing on a line of HP laptops

Question 734392: You are the store manager at a local Best Buy. As manager, you are verifying the store�s December inventory sales and purchases. You are currently focusing on a line of HP laptops which was part of the store's major holiday discount promotion.
December data for HP laptops by week were as follows:
�� December 1 � Beginning balance: 50 units at $600 each
�� December 8 � Sold 30 units
�� December 11 � Purchased 50 units at $800 each
�� December 15 � Sold 40 units
�� December 22 � Sold 20 units
�� December 23 � Purchased 80 units at $850
�� December 30 � Sold 40 units
1. Determine the cost of ending inventory assuming a perpetual inventory system and the LIFO method is used.
2. The year-end inventory count disclosed that 45 units of HP laptops remained on the store floor. Is ending inventory value calculated in #1 accurate based upon the inventory count? If not, how would the balance sheet and income statement be affected if inventory was not corrected?
Answer by lynnlo(4176) (Show Source): You can put this solution on YOUR website!

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