Question

Dobler Company uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows: Units Per unit price Total Balance, 1/1/2022 300 $5 $1500 Purchase, 1/15/2022 150 ..5.3 795 Purchase, 1/28/2022 150 ..5.5 825 An end of the month (1/31/2022) inventory showed that 240 units were on hand. If the company uses LIFO, what is the value of the ending inventory

Answer 1

$2,405

Step-by-step explanation:

LIFO assumes that the units to arrive last will be sold first. Therefore the value of ending inventory is based on the earlier (old) prices.

Ending Inventory = 240 units x $5 = $2,405