Question

Lauer Corporation has provided the following information about one of its laptop computers:DateTransactionNumberof UnitsCost per Unit1/1Beginning Inventory100$8005/5Purchase200$9008/10Purchase300$1,00010/15Purchase200$1,100During the year, Lauer sold 750 laptop computers.What was ending inventory using the LIFO cost flow assumption?

Answer 1

$40,000

Step-by-step explanation:

The LIFO inventory system means last in, first out. It means that It is the last purchased inventory that is first sold.

If 750 laptop computers were sold ,they would be sold from the inventory purchased on 10/15 , 8/10 , 5/5. This would total 700 laptops. The last 50 laptops would be sold from the beginning inventory . This would leave an ending inventory of 50 laptops.

50 × $800 = $40,000

I hope my answer helps you