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Sheffield uses the periodic inventory system. For the current month, the beginning inventory consisted of 7300 units tha...

Sheffield uses the periodic inventory system. For the current month, the beginning inventory consisted of 7300 units that cost $13 each. During the month, the company made two purchases: 2900 units at $14 each and 11800 units at $14.50 each. Sheffield also sold 13100 units during the month. Using the LIFO method, what is the ending inventory?

A. $124066.


B. $117300.


C. $115700.


D. $129050.

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Answer #1

Ans: The correct option for the answer is Option D i.e $129,050

Closing stock units= beginning inventory + purchases - sales

closing stock units= 7300+(2900+11800)- 13,100

closing stock units= 8900

As per rule of LIFO , goods Last purchased should be sold first and units purchased purchased before thereon should be treated afterwards and the rate of of purchasing last one will be treated as sale price will be

closing stock units= 8900*14.50

= $129,050

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