Question

Testbank Multiple Choice Question 145 Sheffield Corp. had 330 units of product A on hand at January 1, 2020, costing $22 each. Purchases of product A during January were as follows: Date Units Unit Cost Jan. 10 410 $23 18 450 24 28 180 25 A physical count on January 31, 2020 shows 440 units of product A on hand. The cost of the inventory at January 31, 2020 under the LIFO method is $10740. $9790. $9490. $10190.

Answer 1

$9790

Step-by-step explanation:

LIFO means last in first out. It means it is the last purchased inventory that is the first to be sold.

If LIFO method is used, the reaming inventory would consist of the earliest purchased inventories.

If 440 units remain, they wold consist of beginning inventory and inventory purchased on 10th of January

(330 x $22) + [(440 - 330) x $23) = $9790