Question

Sweet Company uses a periodic inventory system. Details for the inventory account for the month of January are as follows: Dates Units Per unit price Total Balance, January 1 200 $5.00 $1,000 Purchase, January 15 100 5.30 530 Purchase, January 28 100 5.50 550 An end of the month there are 160 units unsold. If the company uses LIFO, what is the value of the ending inventory?

Answer 1

Ending inventory 800

Step-by-step explanation:

Beginning Inventory:

untis unit price subtotal

January 1st 200 $5.00 $1,000

Purchases

January 15th 100 $5.30 $ 530

January 28 100 $5.50 $ 550

Ending inventory in units: 160

As the company uses LIFO method the first units are ending invenotry and the newest are sold thus, Cost of Good Sold

We are asked for Ending Inventory. We start from the top part filling up to 160 units:

January 1st 200 $5.00 $1,000

from here we take 160 units:

160 units x $5 = $ 800

This is the ending invenotry at January 31th