Question

Fulbright Corp. uses the periodic inventory system. During its first year of operation, Fulbright made the following purchases (listed in chronological order of acquisition): • 40 units at $100 • 70 units at $80 • 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. What is the ending inventory using the LIFO method?

Answer 1

$1000

Step-by-step explanation:

Under the LIFO method, the sales units was 270 units out of which 170 units at $60 is used, 70 units at $80 is used and the remaining 30 units is used at $100

The remaining units i.e 10 units is left which is an ending inventory at$100 i.e $1000

The ending inventory units would be

= Sales units - Available units

= 270 units - 260 units

= 10 units