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blsea [12.9K]
2 years ago
14

Melbourne Company uses the perpetual inventory method. Melbourne purchased 500 units of inventory that cost $4.00 each. At a lat

er date the company purchased an additional 600 units of inventory that cost $5.00 each. If Melbourne uses a LIFO cost flow method, and sells 800 units of inventory, the amount of ending inventory appearing on the balance sheet will be:
Business
1 answer:
ra1l [238]2 years ago
5 0

Answer:

$1,200

Explanation:

Calculation to determine what the amount of ending inventory appearing on the balance sheet will be:

First step is to determine the units in ending inventory

Units in ending inventory=500 units + 600 units – 800 units sold

Units in ending inventory= 300

Now let determine the Ending inventory

Ending inventory=300 units x $4.00

Ending inventory = $1,200

Therefore the amount of ending inventory appearing on the balance sheet will be:$1,200

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Answer:

Gain/loss= $1,000 loss

Explanation:

Giving the following information:

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If the selling price is higher than the book value, the company gain from the sale.

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