If Graphic Design Works uses LIFO and has 125 shorts left in its inventory, the value of its current stock is <u>D. $1485</u>.
<h3>What is the LIFO inventory system?</h3>
The Last-In, First-Out (LIFO) method is an inventory valuation method that assumes that the last units to arrive in inventory are sold first.
The LIFO method is allowed under US GAAP. It is the opposite of FIFO (First-in, First-Out). The FIFO method assumes that the units bought first are the first to be sold.
<h3>Data and Calculations:</h3>
Month of Number Price per Total Cost
Purchase of shorts shorts
June 40 $11 440 (40 x $11)
July 60 $12 720 (60 x $12)
August 80 $13 1,040 (80 x $13)
September 90 $14 1,260 (90 x $14)
Ending inventory 125
Using LIFO:
Value of ending inventory = $1,485 ($440 + $720 + $13 x 25)
Thus, if Graphic Design Works uses LIFO and has 125 shorts left in its inventory, the value of its current stock is <u>D. $1485</u>.
Learn more about the LIFO inventory method at brainly.com/question/6640325
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