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20 December, 01:47

A company had inventory on November 1 of 5 units at a cost of $25 each. On November 2, they purchased 15 units at $27 each. On November 6 they purchased 11 units at $30 each. On November 8, 12 units were sold for $60 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

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  1. 20 December, 01:48
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    Total value of sold goods = $357

    Total value of inventory (after Nov 8) = $503

    Explanation:

    Giving the following information we need to calculate the value of inventory:

    November: 5 units at a cost of $25 each.

    On November 2:15 units at $27 each.

    On November 6:11 units at $30 each.

    On November 8: 12 units were sold for $60 each.

    The compañy uses LIFO (last in first out) inventory

    11 units at $30 = $330

    1 unit at $27 = $27

    Total value of sold goods = $357

    Total value of inventory=5u*25+14*27 = $503
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