Question

Rally Wheels Company had the following balances and transactions during? 2018:

Beginning Merchandise Inventory as of January? 1, 2018	150 units at $73
March 10	Sold 50 units
June 10	Purchased 1450 units at$77
October 30	Sold 150 units

What would the? company's ending merchandise inventory cost be on December? 31, 2018 if the perpetual inventory system and the last??in, first?out inventory costing method are? used?

1 $45,600

2 $30,400

3 $34,650

4 $15,200

Answer 1

Correct answer---------2 $30,400

Working

I have taken June 10 Purchase to be 450 units not 1450 units. I am assuming its an error.

LIFO
	Purchases			Sales			Balance
	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
1-Mar							150	$ 73.00	$      10,950.00
10 March..				50	$             73.00	$    3,650.00	100	$ 73.00	$        7,300.00
10 June…	1450	$               77.00	$      111,650.00				100	73	$        7,300.00
							450	77	$      34,650.00
Oct 30..				150	$             77.00	$ 11,550.00	100	$ 73.00	$        7,300.00
							300	$ 77.00	$      23,100.00

Ending Inventory = 7300+23100.=$30400