Consider the following facts: - Company A had 500 units of inventory on hand at

ID: 2502148 • Letter: C

Question

Consider the following facts:

- Company A had 500 units of inventory on hand at the beginning of the year.

- The unit cost of the beginning inventory items was $18 each.

- On January 14, it sold 375 units for $28 each.

- On January 17, it purchased 250 units for $20 each.

- On January 25, it purchased 250 units for $22 each.

- On January 29, it sold 260 units for $32 each.

- Company A does not use the perpetual inventory accounting method.

- At the end of January, Company A takes a physical inventory count and discovers that 365 units are on hand.

Company A's cost of inventory at the end of January is $_________ under the LIFO accounting method.

$7,800

$8,030

None of these answers are correct.

$6,570

$7,300

As per LIFO method the cost of units in hand at the end of January is:

125 units @ $18 + 240 units @ 20 = $7050

So, the answer is "None of these answers are correct."

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