A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 350 units. 150 units remain in ending inventory at January 31. Units Unit Cost Beginning inventory on January 1 320 3.00 Purchase on January 9 80 3.20 Purchase on January 25 100 3.34Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO.

Question

Addie

Business

14 March, 19:36

A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 350 units. 150 units remain in ending inventory at January 31. Units Unit Cost Beginning inventory on January 1 320 3.00 Purchase on January 9 80 3.20 Purchase on January 25 100 3.34Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO.

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Antonio Cantrell · Answer 1

Ending inventory = $494

Explanation:

Giving the following information:

On January 26, the company sells 350 units. 150 units remain in ending inventory on January 31.

January 1: 320 units for $3.00

January 9: 80 units for $3.20

January 25: 100 units for $3.34

Ending inventory = 100*3.34 + 50*3.2 = $494