Question

Carrington Corp. uses a periodic system and the LIFO method. Carrington had beginning inventory of 30 units purchased at $120 each and made the following purchases during the year: Jan. 15: 34 units at $110 May 30: 61 units at $84 Oct. 20: 160 units at $60 Sales during the year totaled 271 units. What is the cost of ending inventory

Answer 1

Answer:

the cost of ending inventory is $1,680

Explanation:

The computation of the cost of ending inventory is shown below:

But first determine the ending units

Ending inventory units is

= 30 units + 34 units + 61 units + 160 units -271 units

= 14 units

Now

The Cost of ending inventory is

= 14 units × $120

= $1,680

hence, the cost of ending inventory is $1,680

And, the same is to be considered