Question

A company had the following purchases and sales during its first year of operations: Purchases Sales January: 20 units at $200 16 units February: 30 units at $205 15 units May: 25 units at $210 19 units September: 22 units at $215 18 units November: 20 units at $220 21 units On December 31, there were 28 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

Answer 1

Cost of ending Inventory S5,780 Working Notes: Last In First out Method Date Purchases Units Unit Cost Total 20 S 200 $ 4,000 30 $ 20556,150 Cost of Goods Sold Units Unit Cost Total 16 $ 200 $ 3.200 15 S205 $ 3.075 January February May 25 S 210 $ 5,250 19 S 210 3,990 September 22 $ 215 $4,730 | 18 S 215 3,870 Ending Merchandise Inventory Units Unit Cost Total 4 $ 200 S 800 4 $ 200 S 800 15 $ 205 $ 3.075 4 $ 200 S 800 15 S 205 3,075 6 S 210S 1.260 4 $ 200 S 800 15 S 205 S 3,075 6 S 210S 1.260 4 S 215S 860 4 $ 200 S 800 15 S 205 3,075 6 S 210 S 1,260 3 S 215S 645 28 $ 5.780 November 20 $ 220 S 4.400 20 $ 220 1 S 215 $ 4,400 S 215 $18.750