Question

A company had inventory on November 1 of 5 units at a cost of $13 each. On November 2, they purchased 16 units at $15 each. On November 6 they purchased 12 units at $18 each. On November 8, 14 units were sold for $48 each. Using the perpetual LIFO inventory method, what was the value of the inventory on November 8 after the sale

Answer 1

$275

Step-by-step explanation:

The LIFO inventory system means that it is the last purchased inventory is the first to be sold.

The 14 units of inventory sold would be taken from the last two purchases.

The total inventory bought is 33 units

The remaining inventory after the sales is 33 - 14 = 19 units

Cost of remaining inventory =

$13 × 5 = $65

14 × $15 = $210

Total cost = $275

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