Question

The following lots of a particular commodity were available for sale during the year Beginning inventory 9 units at $47.00 First purchase 19 units at $55.00 Second purchase 51 units at $59.00 Third purchase 19 units at $59.00 The firm uses the periodic system, and there are 26 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the LIFO method? Select the correct answer. $1,534.00 $5,598.00 $1,358.00 $1,222.00

Answer 1

Answer:

Ending inventory= $1,358

Explanation:

Giving the following information:

Beginning inventory 9 units at $47.00

First purchase 19 units at $55.00

Second purchase 51 units at $59.00

Third purchase 19 units at $59.00

Ending inventory in units= 26

Under the LIFO (last-in, first-out) method, the ending inventory cost is calculated using the cost of the firsts units incorporated into the inventory.

Ending inventory= 9*47 + 17*55= $1,358