Question

Thelen's inventory records show the following data at January 31 Beginning inventory Jan. 1 Jan. 10 purchase Jan 22 purchase 90 units at $9 per unit 280 units at $12 per unit 90 units at $13 per unit At January 31, 240 units are still on hand. What is the cost of the ending inventory at January 31 if Thelen uses the LIFO method? OA. 52,160 OB. 52,610 OC. $2,760 OD. 53,120

Answer 1

Thelen's LIFO Method: Date Activity 01-Jan Beginning Inventory 10-Jan Purchase 22-Jan Purchase No of units Unit cost 90 $ 9.00 280 $ 12.00 90 $ 13.00 Total Cost $ 810.00 $ 3,360.00 $ 1,170.00 Cost of goods available for sale $ 5,340.00 Ending Inventory: 240 Units 90 units @ $9 150 units @ $12 $ $ $ 810.00 1,800.00 2,610.00 Note : LIFO Method Assumes that Goods which are purchased last will be sold First, So in Ending inventory units will be there which are purchased First Option [B] is Correct