Question

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?

Answer 1

Total value of sold goods= $357

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

Step-by-step 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