salmone company reported the following purchases and sales of its only product. salmone uses a periodic…

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\ndate activities units acquired at cost units sold at retail\nmay 1 beginning inventory 184 units @ $10 = $1,840\nmay 5 purchase 254 units @ $12 = $3,048\nmay 10 sales 174 units @ $20\nmay 15 purchase 134 units @ $13 = $1,742\nmay 24 sales 124 units @ $21\nmultiple choice\n$3,920\n$3,076\n$2,920\n$4,064\n$2,610

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\ndate activities units acquired at cost units sold at retail\nmay 1 beginning inventory 184 units @ $10 = $1,840\nmay 5 purchase 254 units @ $12 = $3,048\nmay 10 sales 174 units @ $20\nmay 15 purchase 134 units @ $13 = $1,742\nmay 24 sales 124 units @ $21\nmultiple choice\n$3,920\n$3,076\n$2,920\n$4,064\n$2,610

Answer

Explanation:

Step1: Calculate total units available

Total units available = Beginning inventory + Purchases = 184+254 + 134=572 units

Step2: Calculate total units sold

Total units sold = 174+124 = 298 units

Step3: Calculate ending - inventory units

Ending - inventory units=Total units available - Total units sold = 572 - 298=274 units

Step4: Apply LIFO (Last - In, First - Out)

Under LIFO, we assume that the last - purchased units are sold first. So, the ending inventory comes from the earliest purchases. First, take all 184 units from the beginning inventory. Remaining units in ending inventory = 274 - 184 = 90 units. These 90 units come from the first purchase. Cost of ending inventory=(184×$10)+(90×$12) = $1840 + $1080 =$2920

Answer:

$2920