Question

Chrissie's Cooking Supply Company has 5,000 skillets in their warehouse at the end of July. One quarter of these skillets were held over from the month of June at a cost of $12 per skillet. The remaining skillets were purchased in July at a cost of $15 per skillet. At the beginning of August they received another 2,000 skillets at a cost of $17 per skillet. The warehouse sold and shipped 2,198 skillets during August. Chrissie's Cooking Supply Company uses LIFO to value their inventory. What would be the remaining balance of skillets in the inventory account at the end of August?

Answer 1

Answer:

The remaining balance is

Units Unit Cost Total

1.250 $12                 $15.000

3.552 $15                 $53.280

Total=$68.280

Explanation:

LIFO Perpetual chart is attached.

It shows purchases, sales and balance of each period. To get the ending inventory cost  we have to add the cost of all units in the last balance of the month.  

That will be,  

Units Unit Cost Total

1.250 $12                 $15.000

3.552 $15                 $53.280

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