Question

A company starts out with 800 units of a particular item in inventory.Assume that their cost is $10 each.Over the next three months it buys 100 more units at $11 each,and then 50 more units at $12 each.If it sold 200 units during that three months,and it uses the LIFO method,you would assume that all of the remaining units should be valued at each

Answer 1

It really depends when in the 3 months the units were bought and sold. If they sold 151 before buying the 50 @ $12, then 1 of the units left at the end of the 3 months would have cost $12 while the others would have cost $10.

But I suspect the answer they want is $10.