Question

Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each. During the period, the company purchased
inventory items as follows:

Glasgow sold 220 units after purchase 3 for $17.00 each.
What is Glasgow's ending inventory under LIFO?

Answer 1

$2,340 is Glasgow's ending inventory under LIFO.

LIFO stands for “Last-In, First-Out”. It is a method used for the purpose of assuming cost flows when calculating the cost of goods sold. The LIFO method assumes that the newest products added to the company's inventory are sold first.

In times of rising prices, it may be beneficial for companies to use LIFO versus FIFO cost accounting. Under LIFO, businesses can save on taxes and also better align their income with the latest costs when prices rise. International Financial Reporting Standards (IFRS).

The order in which an element is added to or removed from the stack is described as last in, first out, abbreviated as LIFO.

Learn more about LIFO here brainly.com/question/10026597

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