4. Sylvia's Designs Co. had the following inventoryactivity during April:UnitsUnitCostBeginning inventory...4. Sylvia's Designs Co....

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Accounting

4. Sylvia's Designs Co. had the following inventoryactivity during April:
Units
Unit
Cost
Beginning inventory
100
$10
Purchase (April 3)
50
12
Sale (April 10)
80
Purchase (April 18)
40
14
Purchase (April 23)
60
15
Sale (April 28)
120
Assuming Sylvia's uses a perpetual LIFO cost flowassumption, ending inventory for April would be
a.
$ 750
b.
$2,560
c.
$ 500
d.
$2,310

Answer & Explanation Solved by verified expert

3.9 Ratings (674 Votes)

Answer: Correct Answer is (c) $500

Stock statement onLIFO basis
	Purchase			Sales			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Beg Inv							100	$10.00	$1,000
03-04	50	$12.00	$600.00				100	$10.00	$1,000
							50	$12.00	$600.00
10-04				50	$12.00	$600.00
				30	$10.00	$300.00	70	$10.00	$700.00

18-04	40	$14.00	$560.00				70	$10.00	$700.00
							40	$14.00	$560.00

23-Apr	60	$15.00	$900.00				70	$10.00	$700.00
							40	$14.00	$560.00
							60	$15.00	$900.00
28-Apr				60	$15.00	$900.00
				40	$14.00	$560.00
				20	$10.00	$200.00	50	$10.00	$500.00

	150		200	120		1,660	50		$500.00

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Transcribed Image Text

In: Accounting4. Sylvia's Designs Co. had the following inventoryactivity during April:UnitsUnitCostBeginning inventory...4. Sylvia's Designs Co. had the following inventoryactivity during April:UnitsUnitCostBeginning inventory100$10Purchase (April 3)5012Sale (April 10)80Purchase (April 18)4014Purchase (April 23)6015Sale (April 28)120Assuming Sylvia's uses a perpetual LIFO cost flowassumption, ending inventory for April would bea.$ 750b.$2,560c.$ 500d.$2,310

	Units	Unit Cost
Beginning inventory	100	$10
Purchase (April 3)	50	12
Sale (April 10)	80
Purchase (April 18)	40	14
Purchase (April 23)	60	15
Sale (April 28)	120