Question

Company had inventory on November 1 of 5 units at a cost of $17 each. On November 2, they purchased 12 units at $19 each. On November 6 they purchased 8 units at $22 each. On November 8, 12 units were sold for $52 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

Answer 1

Answer:

$237

Explanation:

For computing the value of inventory first we have to compute the inventory units which is shown below:

= 5 units + 12 units + 8 units - 12 units

= 13 units

Now the value of inventory is

= 5 units × $17 + 8 units × $19

= $85 + $152

= $237

The 8 units is come from

= 13 units - 5 units

= 8 units

Hence, the value of the inventory is $237