Question

Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Quantity Unit Cost Total Cost Beginning inventory (Jan. 1) 16 $ 10 $ 160 Purchase (Jan. 11) 14 $ 12 168 Purchase (Jan. 20) 23 $ 15 345 Total 53 $ 673 - On January 14, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at January 31. Assuming that Beech Soda uses the LIFO cost flow assumption, the 28 units of this product in inventory at January 31 have a total cost of:

Answer 1

Answer:

$304

Explanation:

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

There was a total of 53 inventories before any sales. The 25 units sold would be sold from the last purchased inventories. That is the inventory purchased on Jan 20 and 11.

The remaining inventory =

12 × $12 = $144

16 × $10 = $160

Total = $304

I hope my answer helps you