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 SalesJan. 14 375 @ $1417 250 @ $10 25 250 @ $11 29 260 @ $16Partridge 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 JanuaThe cost of the inventory at January 31, under the LIFO method is:a.$3,900.b.$3,650.c.$4,015.d.$3,285.

Answer 1

Answer:

D) $3,285.

Explanation:

Date                                                  Purchases        Sales

Jan. 1   initial inventory 500 @ $9

Jan. 14                                                375 @ $14  

Jan. 17                                                250 @ $10  

Jan. 25                                               250 @ $11  

Jan. 29                                               260 @ $16  

January 31 only 365 units left.

Under LIFO what is the cost of inventory?

365 units x $9 per unit = $3,285