Question

A company had inventory on November 1, of 5 units at a cost of $24 each. On November 2, they purchased 14 units at $26 each. On November 6 they purchased 10 units at $29 each. On November 8, 11 units were sold for $59 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?
a) $460
b) $471
c) $482
d) $472
e) $458

Answer 1

Answer:

e

Explanation:

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

If 11 inventories were sold, the inventory left would consist of 13 units purchased on the 2nd and 5 units the company had on the 1st

Inventory value = (13x 26) + (5 x 24) = 458