Question

FIFO and LIFO costs under perpetual inventory system. Calculate the total cost of the ending inventory according to LIFO.

Option a: $1,581
Option b: $1,648
Option c: $1,525
Option d: $1,609

Answer 1

LIFO is a cost flow assumption used in inventory valuation, but without the necessary information, the total cost of the ending inventory cannot be calculated.

Step-by-step explanation:

LIFO (Last-In, First-Out) is a cost flow assumption used in inventory valuation. Under LIFO, the cost of the most recently purchased or produced items are assigned to the cost of goods sold first. In this case, we need to calculate the total cost of the ending inventory according to LIFO. To do this, we need information about the quantities and costs of the items.

Without the necessary information, it is not possible to calculate the total cost of the ending inventory according to LIFO. Therefore, we cannot determine the correct option among the given choices (a: $1,581, b: $1,648, c: $1,525, d: $1,609).