Question

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to ending inventory using LIFO. Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 220 units @ $17 5 Purchase 255 units @ $19 10 Sales 175 units @ $27 15 Purchase 135 units @ $20 24 Sales 125 units @ $28 Multiple Choice $7,660 $3,780 $6,800 $4,185 $5,450

Answer 1

В С A 1 1) 2 Total units available 3 Units sold | 4 Units in ending inventory 5 2) 6 Cost of ending inventory under LIFO [periodic] Nm 610 300 $5,450 8 Option (e) is the correct answer.

1 1) 2 Total units available =220+255+135 3 Units sold =175+125 4 Units in ending inventory =B2-B3 5 2) 6 Cost of ending inventory under LIFO [periodic] =(220*17)+(90*19) 7 8 Option (e) is the correct answer.