Question

Keck Co. had 150 units of product A on hand at January 1, 2014, costing $21 each. Purchases of product A during January were as follows:Date Units Unit CostJan. 10 200 $2218 250 2328 100 24A physical count on January 31, 2014 shows 200 units of product A on hand. The cost of the inventory at January 31, 2014 under the LIFO method is:a. $4,700.b. $4,450.c. $4,250.d. $4,100.

Answer 1

The correct answer is C: $4,250

Step-by-step explanation:

Giving the following information:

Product A:

January 1: 150 units costing $21 each.

Purchases:

200 units at $22.18

250 units $23.28

100 units $24

January 31, 2014: 200 units of product A on hand.

Inventory method: LIFO (last-in, first-out):

Inventory cost= 150*21 + 50*22.18= $4,259

Rounding to 4250