Question

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $11.00 5/5 Purchase 200 $11.50 5/10 Sales 300 $25 5/15 Purchase 200 $12.50 5/20 Sales 250 $28 5/25 Purchase 150 $14.00 Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.

Answer 1

As per LIFO perpetual method:
Cost of Ending Inventory	=	$    2,375
Workings:
	Cost of goods available for sale			Cost of goods sold			Ending Inventory
LIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending Inventory
May-01							175	$    11.00	$    1,925
May-05	200	$    11.50	$    2,300				175	$    11.00	$    1,925
							200	$    11.50	$    2,300
May-10				200	$       11.50	$       2,300	75	$    11.00	$        825
				100	$       11.00	$       1,100
May-15	200	$    12.50	$    2,500				75	$    11.00	$        825
							200	$    12.50	$    2,500
May-20				200	$       12.50	$       2,500	25	$    11.00	$        275
				50	$       11.00	$           550
May-25	150	$    14.00	$    2,100				25	$    11.00	$        275
							150	$    14.00	$    2,100
Total	550		$    6,900	550		$       6,450	175		$    2,375