Gimo begins operations in 2013 and uses the periodic method and LIFO costing. It

Question

Gimo begins operations in 2013 and uses the periodic method and LIFO costing. Its merchandise purchases are as follows:

2013 2014 2015

March 300 @ $4 600 @ $8 900 @ $11

July 500 @ $5 900 @ $12 600 @ $14

September 200 @ $7 100 @ $9 700 @ $13

November 400 @ $6 700 @ $10 100 @ $16

Assume Jimo's December 31, 2013 ending inventory is 300 units; its December 31, 2014 ending

inventory is 800 units; and its December 31, 2015 ending inventory is 600 units (which is lower than its

2015 beginning inventory). What is Jimo's December 31, 2015 ending inventory?

Explanation / Answer

Jimo's December 31, 2015 ending inventory is 600 units @ $3600.

2013 Purchase Sales Balance Month Unit per unit price$ Total $ Unit per unit price$ Total $ Unit per unit price$ Total $ March 300 4 1200 July 500 5 2500 September 200 7 1400 November 400 6 2400 300 4 1200 Total 1400 7500 1100 300 1200

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