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Question
Sites Web Slice Gallery ac Yahoo Search Results Connect apters 4, 5, 6) 6 Help Save& Exit Sub Saved MC Qu. 100 A company had the following... A company had the following purchases and sales during its first year of operations: Purchases Sales January: 20 units at $190 12 units February: 30 units at $195 12 units May: September: 22 units at $205 15 units November: 20 units at $210 24 units 25 units at $200 16 units On December 31, there were 38 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) Multiple Choice Prev 24 of 30 Next> 19Explanation / Answer
Under the LIFO perpetual inventory method, latest inventory is issued first for sales and the closing stock consists of oldest inventory
So, Value of ending Inventory
= $1,520 + $3,510 + $1,800 + $615
= $7,445
So, as per above calculations, option E is the correct option
Date Purchases Sales Balance January 20 units x $190 = $3,800 12 units x $190 = $2,280 8 units x $190 = $1,520 February 30 units x $195 = $5,850 12 units x $195 = $2,340 8 units x $190 = $1,52018 units x $195 = $3,510 May 25 units x $200 = $5,000 16 units x $200 = $3,200 8 units x $190 = $1,520
18 units x $195 = $3,510
9 units x $200 = $ 1,800 September 22 units x $205 = $4,510 15 units x $205 = $3,075 8 units x $190 = $1,520
18 units x $195 = $3,510
9 units x $200 = $ 1,800
7 units x $205 = $1,435 November 20 units x $210 = $4,200 20 units x $210 = $4,200
4 units x $205 = $820 8 units x $190 = $1,520
18 units x $195 = $3,510
9 units x $200 = $ 1,800
3 units x $205 = $615