Eastview Company uses a periodic LIFO inventory system, and has the following purchases and sales: January 1 150 units were purchased at $9 per unit. January 17 120 units were sold. January 20 160 units were purchased at $11 per unit. January 29 150 units were sold. What is the value of ending inventory?

Question

Business

Jaylon Chambers

26 November, 05:22

Eastview Company uses a periodic LIFO inventory system, and has the following purchases and sales: January 1 150 units were purchased at $9 per unit. January 17 120 units were sold. January 20 160 units were purchased at $11 per unit. January 29 150 units were sold. What is the value of ending inventory?

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Bo Moyer · Answer 1

Ending inventory = $360

Explanation:

Giving the following information:

January 1: 150 units for $9 per unit.

January 17: 120 units were sold.

January 20: 160 units were purchased at $11 per unit.

January 29: 150 units were sold.

Under LIFO (last-in, first-out) method, the value of ending inventory is the value of the first units incorporated.

First, we need to calculate the ending inventory in units:

Ending inventory in units = total units - units sold

Ending inventory in units = (150 + 160) - (120 + 150) = 40 units

Ending inventory ($) = 40*$9 = $360