Question

Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows:
Date Purchases Sales
Jan. 14 375 @ $14
17 250 @ $10
25 250 @ $11
29 260 @ $16


Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31.

The cost of the inventory at January 31, under the LIFO method is:

Partridge Bookstore had 500 units on hand at Janua

$3,900.
$3,650.
$4,015.
$3,285.

Answer 1

Answer:

$3,285.

Explanation:

The LIFO method stands for Last in first out, that means the last one of stock should be sold on first basis, and the other items should be sold accordingly

According to the question, the cost of inventory for the end of the year is shown below:

= Units on hand × beginning unit price for each unit

= 365 units × $9

= $3,285

All other information is ignored for the computation part