The cost of ending inventory and cost of goods sold if ending inventory is 110 barrels of crude oil would be = $10,718
<h3>What is LIFO accounting method?</h3>
The LIFO accounting method is the type of method that is used for cost flow assumption purposes in the cost of goods sold calculation. This accounting method makes use of the cost paid for recent products in its calculation.
In the beginning inteventory when the total barrels of crude oil was 370, the total amount or cost of products sold= $36,052.
The ending inventory when the total barrels of crude oil is 110 would be $x amount.
Mathematically,
370 barrels = $36,052
110 barrels = $x
Make $x the subject of formula;
$x = 110 × 36,052/370
$x = 3965720/370
$x = $10,718
Therefore, the cost of ending inventory and cost of goods would be $10,718 for total number of 110 barrels.
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