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The following lots of a particular commodity were available for sale during the year Beginning inventory 11 units...

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Accounting

The following lots of a particular commodity were available forsale during the year

Beginning inventory11 units at $49.00
First purchase18 units at $53.00
Second purchase50 units at $57.00
Third purchase14 units at $60.00

The firm uses the periodic system, and there are 27 units of thecommodity on hand at the end of the year. What is the amount ofinventory at the end of the year according to the LIFO method?

Select the correct answer.

$5,183.00

$1,387.00

$1,581.00

$1,323.00

Answer & Explanation Solved by verified expert
4.5 Ratings (761 Votes)

  • Correct Answer = Option #2: $ 1387 = Ending inventory as per LIFO

LIFO

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

11

$                49.00

$                            539.00

0

$               49.00

$                              -  

11

$                 49.00

$                539.00

Purchases:

#1

18

$                53.00

$                            954.00

2

$               53.00

$                     106.00

16

$                 53.00

$                848.00

#2

50

$                57.00

$                        2,850.00

50

$               57.00

$                 2,850.00

0

$                 57.00

$                         -  

#3

14

$                60.00

$                            840.00

14

$               60.00

$                     840.00

0

$                 60.00

$                         -  

TOTAL

93

$                        5,183.00

66

$                 3,796.00

27

$           1,387.00 [ANSWER]

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