Question

Transactions for the month of June were Purchases Sales 2460 @ $5.70 June 1 (balance) 3230 @ $3.20 June 2 8900@ 3.10 6320@ 3 6 5.70 4780@ 7 3.30 9 4080 @ 5.70 7300@ 10 1510 @ 15 3.40 7.00 2100 @ 3.50 22 18 5570 @ 7.00 780 @ 25 7.00 Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO basis is $18453 $16846 $17046 $19216

Answer 1

Answer- The ending inventory on a LIFO basis is =$18453.

Explanation-

LIFO Method
	Goods purchased		Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Jun-01						3230	3.20	10336
Jun-02			2460	3.20	7872	770	3.20	2464
Jun-03	8900	3.10				770	3.20	2464
						8900	3.10	27590
Jun-06			6320	3.20	20224	770	3.20	2464
						2580	3.10	7998
Jun-07	4780	3.30				770	3.20	2464
						2580	3.10	7998
						4780	3.30	15774
Jun-09			4080	3.30	13464	770	3.20	2464
						2580	3.10	7998
						700	3.30	2310
Jun-10			700	3.30	2310	770	3.20	2464
			810	3.10	2511	1770	3.10	5487
Jun-15	7300	3.40				770	3.20	2464
						1770	3.10	5487
						7300	3.40	24820
Jun-18			5570	3.40	18938	770	3.20	2464
						1770	3.10	5487
						1730	3.40	5882
Jun-22	2100	3.50				770	3.20	2464
						1770	3.10	5487
						1730	3.40	5882
						2100	3.50	7350
Jun-25			780	3.5	2730	770	3.20	2464
						1770	3.10	5487
						1730	3.40	5882
						1320	3.50	4620
Totals			20720		68049	5590		18453