Question

had the following balances and transactions during​ 2018: Beginning Merchandise Inventory 10 units at $74 March 10 Sold 7 units June 10 Purchased 30 units at $84 October 30 Sold 25 units What is the amount of the​ company's ending Merchandise​ Inventory, as disclosed in the December​ 31, 2018 balance​ sheet, using the periodic LIFO inventory costing​ method?

Answer 1

Answer:

$592

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

the ending inventory would consist of earlier purchased goods.

total goods sold is 32. it would be taken from the purchase on June 10 and 2 units would be taken from beginning inventory.

ending inventory = 10 -2 = 8 x $74 = $592