Warnerwoods Company uses a perpetual inventory system. It entered into the follo

Question

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchase and sale transactions for March: Date Activity Units acquired at cost Units sold at retail March 1 beginning inventory 100 units @ $50/unit March 5 purchase 400 units @ $55/unit March 9 sale 420 units @ $85/unit March 18 purchase 120 units @ $60/unit March 25 purchase 200 units @ $62/unit March 29 sale 160 units @ $95/unit TOTALS 820 units 580 units Compute the ending inventory for the month using LIFO. $32,920 $14,800 $50,900 $31,800 $13,680 $32,248

Explanation / Answer

Answer:-The ending inventory for the month using LIFO:-$13680

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 Mar-01 100 50 5000 Mar-05 400 55 100 50 5000 400 55 22000 Mar-09 400 55 22000 80 50 4000 20 50 1000 Mar-18 120 60 80 50 4000 120 60 7200 Mar-25 200 62 80 50 4000 120 60 7200 200 62 12400 Mar-29 160 62 9920 80 50 4000 120 60 7200 40 62 2480 Totals 580 32920

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