Question

Sorry it’s blurry!!

$1408. 9:17 AM

Answer 1

LAST IN FIRST OUT (LIFO) method of inventory valuation:

This method is based on the assumption that the items of last batch purchased are the first to be issued. Therefore under this method the prices of the last batch are used for pricing the issues, until it is exhausted and so on.

Calculation:

Date	Qty     (A)	Total Price    (B)	Per Unit Price     (C) (B/A)
June 1	117	810	6.923
June 10	156	1220	7.821
June 15	156	1310	8.397
June 28	117	1030	8.803

Inventory Closing Balance = 160 units i.e from 117 units purchases on June 1 and 43 units purchased on June 10.Therefor Value of Inventory as per LIFO is

= (117 units * $6.923 per unit ) + (43 units * $7.821 per unit) = $1146