Question

A company had the following purchases and sales during its first year of operations:

	Purchases	Sales
January:	11 units at $135	7 units
February:	21 units at $140	5 units
May:	16 units at $145	9 units
September:	13 units at $150	8 units
November:	11 units at $155	14 units

On December 31, there were 29 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

Answer 1

Cost of Ending Inventory = $4,095
Workings:
LIFO - Perpetual	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
January	11	$        135	$    1,485	7	$        135	$        945	4	$        135	$        540
February	21	$        140	$    2,940	5	$        140	$        700	16	$        140	$    2,240
May	16	$        145	$    2,320	9	$        145	$    1,305	7	$        145	$    1,015
September	13	$        150	$    1,950	8	$        150	$    1,200	2	$        150	$        300
				3	$        150	$        450
November	11	$        155	$    1,705	11	$        155	$    1,705	0	$        155	0
Total	72		$ 10,400	43		$    6,305	29		$    4,095