See, LI has the property display: inline; which will also count spaces. Replace it with float: left; and it will work.
#sortable1 li, #sortable2 li {margin: 0 5px 5px 5px; padding: 5px; font-size: 1.2em; width: 50px; float: left; list-style-type:none; background:black; }
I changed width: 50px; float: left; width: 50px; float: left; .
Updated script: http://jsfiddle.net/fKQsG/1/
source share