Question

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019:

Date	Activity	Quantity	Unit Price
5/1	Beginning Inventory	175	$10.50
5/5	Purchase	200	$12.50
5/10	Sales	300	$25
5/15	Purchase	200	$12.50
5/20	Sales	250	$28
5/25	Purchase	150	$13

Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.

Answer 1

Answer- Using the LIFO method, the dollar value for Ending Inventory at the end of month of May is = $2212.50.

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
May-01						175	10.50	1837.50
May-05	200	12.50				175	10.50	1837.50
						200	12.50	2500
May-10			200	12.50	2500	75	10.50	787.50
			100	10.50	1050
May-15	200	12.50				75	10.50	787.50
						200	12.50	2500
May-20			200	12.5	2500	25	10.50	262.50
			50	10.5	525
May-25	150	13				25	10.50	262.50
						150	13	1950
Totals			550		6575	175		2212.50