Question

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $11.50 5/5 Purchase 200 $10.50 5/10 Sales 300 $25 5/15 Purchase 200 $12.50 5/20 Sales 250 $28 5/25 Purchase 150 $12.50 Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.

Answer 1

Total ending inventory $ 2,162.5‬ LIFO perpetual method

Step-by-step explanation:

At the time of each sale we determinate the last untis available for sale:

Beginning 175

Purchase 200

Slaes of 300

We use the entire 200 units purchase and 100 of the beginning inventory leaving

Beginning inventory of 75

Now, we continue:

Beginning inventory 75

5/15 purchase 200

Sales of 250 units

we use the entire 200 untis form the purchase and 50 units from beginning inventory

leaving

Beginning inventory 25 at 11.50 = 287.5

5/25 purcahse 150 units at 12.50 = 1875

Total ending inventory 2,162.5‬