Answer:
Ending inventory cost= $1,150
Explanation:
Giving the following information:
Beginning inventory 10 units at $55
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
Under the periodic inventory system, the cost of goods sold and ending inventory is calculated at the end of the period.
Under LIFO (last-in, first-out), the ending inventory costs are the one corresponding to the first units inn.
Units in inventory= total units - sales
Units in inventory= 80 - 60= 20 units
Ending inventory cost= 10*55 + 10*60= $1,150
