Final answer:
The ending inventory balance at the end of the year according to the LIFO method is $1,143.
Step-by-step explanation:
The ending inventory balance at the end of the year according to the LIFO method can be calculated by subtracting the units sold from the total units available. In the LIFO method, the most recent purchases are assumed to be sold first. To calculate the units sold, we need to start with the beginning inventory, then subtract the purchases made during the year until we reach the units on hand at the end of the year.
Beginning inventory: 7 units at $49 each = $343
First purchase: 18 units at $50 each = $900
Second purchase: 53 units at $59 each = $3,127
Third purchase: 18 units at $64 each = $1,152
Total units available: 7 + 18 + 53 + 18 = 96 units
Units sold: 96 - 23 (units on hand at the end of the year) = 73 units
To calculate the ending inventory balance, we need to multiply the cost per unit with the remaining units on hand at the end of the year.
$64 (cost per unit) x 23 (units on hand) = $1,472
Therefore, the correct answer is (d) $1,143.