Question

Question Hep Metro Computer, Inc. had the following balances and transactions during 2017 Beginning Merchandise Inventory as of January 1, 2017 320 units at $70 March 10 to p Sold 80 units Purchased 1,280 units at $76 Sold 125 units June 10 October 30 What would the company's anding merchandise inventory amount be on December 31,2017 if the perpetual inventory system and the last-in, fist-out inventory costing method are used? utions O A. $97.280 O B. $119.680 O C. $15,100 O D. $104 580

Answer 1

Solution:

Computation of ending inventory under LIFO Method (Perpetual)
Date	Goods Purchased		Cost of goods sold			Inventory Balance
	Units	Cost per unit	Units	Cost per unit	COGS	Units	Cost per unit	Inventory Balance
1-Jan						320	$70.00	$22,400.00
10-Mar			80	$70.00	$5,600.00	240	$70.00	$16,800.00
10-Jun	1280	$76.00				240	$70.00	$16,800.00
						1280	$76.00	$97,280.00
30-Oct			125	$76.00	$9,500.00	240	$70.00	$16,800.00
						1155	$76.00	$87,780.00
Ending Inventory=						1395		$1,04,580.00

Hence option "D" is correct.