Question

1. The following information applies to the inventory of James Dixon Company and will be used for two questions on the exam:

   		Units	Cost per Unit
   February 1	Inventory on hand	400	$8
   February 4	Purchase	800	11
   February 6	Sale	1,000
   February 16	Purchase	1,300	16
   February 19	Sale	1,400
   February 25	Purchase	700	20

   The company only has one product.

   Round $/unit values to four decimals where necessary

   Calculate ending inventory using the LIFO perpetual method for the month of February.

   		$31,467
   		$31,200
   		$46,800
   		$14,000
   		$11,700
   		$3,200
   		$800
   		$30,907
   		$15,600
   		$2,400
   		$15,520
   		$14,800
   		$7,600
   		$1,520
   		$31,280
   		$35,100
   		$39,200
   		$32,000

Answer 1

The Answer is $ 14,800

Calculation:

Particulars	Units	Unit Cost	Cost
Beginning Inventory	400	$                                   8	$                3,200
Purchases 1	800	$                                11	$                8,800
Purchases 2	1,300	$                                16	$              20,800
Purchases 3	700	$                                20	$              14,000
Total Goods available for sale [A]	3,200		$              46,800
Particulars	Units	Unit Cost	Cost of goods sold
Sale	1000	(800*11)+(200*8)	$              10,400
	1400	(1300*16)+(100*8)	$              21,600
Total Cost of goods sold [B]	2400		$              32,000
Ending Inventory [A-B]	800	(700*20)+(100*8)	$              14,800