Question

Roadside, Inc. had the following balances and transactions during​ 2018:Beginning Merchandise Inventory10units at $ 72March 10Sold 8unitsJune 10Purchased 20units at $ 82October 30Sold 14unitsWhat is the amount of the​ company's ending Merchandise​ Inventory, as disclosed in the December​ 31, 2018 balance​ sheet, using the periodic LIFO inventory costing​ method?

Answer 1

$576

Step-by-step explanation:

The computation of the ending inventory using the periodic LIFO inventory costing​ method is shown below:

But before determining the ending inventory first we have to find out the ending inventory units which is

Units of ending inventory = Opening Stock + Units purchased - Units sold

= 10 + 20 - (8 + 14)

= 8 units

The Ending inventory is 8 units. So, These should be the units out of opening stock

Therefore

Ending inventory is

= 8 units × $72

= $576