Question

Deshaun Watson Inc. has the following information related to the purchases and sales of one of their inventory items: Beginning Inventory: 100 units at $10 per unit Purchases: 1/1 - 30 units @ $9 per unit 4/30 - 20 units $ $11 per unit 10/31 - 50 units at $12 per unit Sales: 1/15 - 90 units sold @ $25 per unit 5/5 - 15 units sold @ $25 per unit 11/15 - 40 units sold @ $20 per unit Assuming that Watson uses a periodic LIFO inventory system, the value of the ending inventory

Answer 1

In LIFO inventory system we have to sell first that unit which enter in inventory last means last unit in first sell out.

Deate Sales Balance Purchase Beginning inventory zounit @ a por writ 100 X10 2 lour V 1/15 20892 270 zounit 1270 90x25 = 2250 gounit @ 251 4/30 zounit @ u perunit 40810 e 400 20x11 e 220 60 unit 620 [15x25 = 375 5/5 15 unit @ 25 40x102 400 5 2 55 4 sunit 455 193L50wwt @ 21- Yox10 400 5X112 85 Sox122600 95 unit loss Wes 40 unit @ 201-40x20 2 800 Balance 40X10 400 sxll a ss 10x12 z 120 Issunta 515