Using the LIFO cost flow assumption, RJ Corporation's ending inventory is $640,000.
The LIFO (last-in, first-out) cost flow assumption is a costing accounting assumption that is based on accounting for the cost of ending inventory using the unit costs of earlier inventories.
The goods sold are assumed to be from the latest purchases instead of the earlier purchases.
Total inventory = 3,200
Sales during the year = 3,000
Ending inventory = 200 units (3,200 - 3,000)
Unit cost of ending inventory based on LIFO = $3,200
Total cost of ending inventory = $640,000 ($3,200 x 200)
Thus, using the LIFO cost flow assumption, RJ Corporation's ending inventory is $640,000.
Learn more about the LIFO inventory system at https://brainly.com/question/15122792
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RJ Corporation has provided the following information about one of its inventory items:
Date Transaction Number of Units Cost per Unit Total
1/1 Beginning Inventory 400 $3,200 $1,280,000
6/6 Purchase 800 3,600 2,880,000
9/10 Purchase 1,200 4,000 4,800,000
11/15 Purchase 800 4,200 3,360,000
Total 3,200 $12,320,000
Sales during the year 3,000
Ending inventory 200 (3,200 - 3,000)
