A company had inventory on November 1 of 5 units at a cost of $14 each. On Novem

Question

A company had inventory on November 1 of 5 units at a cost of $14 each. On November 2, they purchased 15 units at $16 each. On November 6 they purchased 11 units at $19 each. On November 8, 13 units were sold for $49 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

$279

$321

$266

$278

$292

A company had inventory on November 1 of 5 units at a cost of $14 each. On November 2, they purchased 15 units at $16 each. On November 6 they purchased 11 units at $19 each. On November 8, 13 units were sold for $49 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

Explanation / Answer

Ending inventory using LIFO=(13 units@$16)+(5 units@$14)=$278

As per LIFO(last in first out);goods sold would comprise of 11 units purchased on November 6 @$19 each and the balance(13-11)=2units purchased on November 2@$16 each.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.