Question

a company starts out with 800 units if a particular item in inventory.Assume that their cost is $10 ach. Over the next three months it buys 100 more units at $11 each,and then 50 more units at $12 each. It sold 200 units during that three months, and it uses the Last In First Out method, you would assume that all of the remaining units should e valued at ----each. a. $10 b. $11. c. $12. d. none of the above answers is correct because you must average the various purchase prices to find the amount to apply to the ending inventory

Answer 1

Last in First out - The last item/inventory purchased are sold first. Hence your answer is a.$10.