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20 November, 16:26

Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of product A during the month of January were as follows: Units Unit cost Jan. 10 200 $22 18 250 23 28 100 24

A physical count on January 31, year 2, shows 250 units of product A on hand. The cost of the inventory at January 31, year 2, under the LIFO method is

a. $5,850b. $5,550c. $5,350d. $5,250

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  1. 20 November, 16:53
    0
    a. $5,850

    Explanation:

    Under the LIFO Method, the cost of good sold equals to

    = January 28 units * cost per unit + Remaining units * cost per unit

    = 100 units * $24 + 150 units * $23

    = $2,400 + $3,450

    = $5,850

    Since the firm has sold 250 units, so out of which 100 units sold at a price of $24 and the remaining 150 units sold at a price of $23
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Home » Business » Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of product A during the month of January were as follows: Units Unit cost Jan.
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