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prohojiy [21]
3 years ago
14

June

Law
1 answer:
bonufazy [111]3 years ago
6 0

LIFO stands for Last in First out, essentially stating that the most recent products produced or purchased are the first to be sold or expensed. So lets list the quantity, dates, and prices in an ordered fashion.

June 1: 150 units $825

June 10: 200 units $1,120

June 15: 200 units $1,140

June 28: 150 units $885

Total: $3,970

What we know from the question is that only 200 units arrived. This plus the fact that we know we must use the LIFO method means that only the first 200 units arrived. So we get rid of every other unit cost in order to find ending inventory. So, lets find what's left.

150 units from June 1st: $825

50 units from June 10th: $1,120 / 200 = $5.6 per unit * 50 units = $280

$825 + $280 = $1,105

This means that the answer is going to be A - $1,105.

I hope I've helped! :)

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