eastview company uses a periodic lifo inventory system, and has the following purchases and…

eastview company uses a periodic lifo inventory system, and has the following purchases and sales:\ndate\tactivities\tunits acquired at cost\tunits sold at retail\njanuary 1\tpurchase\t150 units @ $9 = $1,350\njanuary 17\tsales\t\t120 units sold\njanuary 20\tpurchase\t160 units @ $11 = $1,760\njanuary 29\tsales\t\t150 units sold\nwhat is the value of ending inventory?\n$2,670.\n$440.\n$2,730.\n$360.\n$2,750.

eastview company uses a periodic lifo inventory system, and has the following purchases and sales:\ndate\tactivities\tunits acquired at cost\tunits sold at retail\njanuary 1\tpurchase\t150 units @ $9 = $1,350\njanuary 17\tsales\t\t120 units sold\njanuary 20\tpurchase\t160 units @ $11 = $1,760\njanuary 29\tsales\t\t150 units sold\nwhat is the value of ending inventory?\n$2,670.\n$440.\n$2,730.\n$360.\n$2,750.

Answer

Explanation:

Step1: Calculate total units available

Total units available = 150 (Jan 1 purchase)+160 (Jan 20 purchase)=310 units

Step2: Calculate total units sold

Total units sold = 120 (Jan 17 sales)+150 (Jan 29 sales)=270 units

Step3: Calculate ending - inventory units

Ending - inventory units = 310 - 270 = 40 units

Step4: Determine cost of ending inventory using LIFO

Under LIFO, the last - in units are sold first. So the ending inventory comes from the earliest purchases. The 40 units of ending inventory come from the January 1 purchase at $9 per unit. Cost of ending inventory = 40×$9=$360

Answer:

$360$