Question

Smitty's Hair Salon, Tire Care, and Candy Shop recorded the following purchases, and inventory levels, of candy (in cases) from last operating period. Date Description Cases Unit Price T. Cost OP INV 150 $1.10 $165.00 Purchases 50 $1.12 $56.00 Purchases $1.14 $54.72 Purchases $1.15 $71.30 Purchases $1.18 $63.72 Purchases $1.18 $36.58 Purchases $1.12 $49.28 Purchases $1.10 $72.60 Purchases $1.08 $86.40 Purchases $1.15 $103.50 Purchases $59.80 Purchases $1.12 $76.16 Purchases $1.20 $38.40 $1.15 Closing Inventory: 200 cases Using the information above, calculate the closing inventory value using the method indicated below: Last-In, First-Out (LIFO) Method Select one: a. $226 b. $240 c. $229.56 d. $221

Answer 1

Answer) Option D {($221) As the method of inventory valuation is Last In First Out and the closing inventory is 200 cases, so this means all the units purchased later are sold and cases left are 150 units from opening inventory and purchases made on date 3)