Salmone Company reported the following purchases and sales of its only product.
ID: 2575746 • Letter: S
Question
Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to ending inventory using LIFO.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
230 units @ $18
5
Purchase
260 units @ $20
10
Sales
180 units @ $28
15
Purchase
140 units @ $21
24
Sales
130 units @ $29
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
230 units @ $18
5
Purchase
260 units @ $20
10
Sales
180 units @ $28
15
Purchase
140 units @ $21
24
Sales
130 units @ $29
Explanation / Answer
Calculate ending inventory under LIFO periodic method :
LIFO No of units available for sale 630 units Cost of units available for sale 12280 Ending inventory (units) 320 units Ending inventory cost (230*18+90*20) 5940Related Questions
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