Question

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019:

Date	Activity	Quantity	Unit Price
5/1	Beginning Inventory	175	$12.00
5/5	Purchase	200	$10.50
5/10	Sales	300	$25
5/15	Purchase	200	$13.00
5/20	Sales	250	$28
5/25	Purchase	150	$13.50

Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.

Answer 1

LIFO		Cost of Goods Available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
May-01	Beginning Inventory							175	$   12.00	$    2,100.00
May-05	Purchase	200	$              10.50	$      2,100.00				175	$   12.00	$    2,100.00
								200	$   10.50	$    2,100.00
May-10	Sales				200	$   10.50	$ 2,100.00	75	$   12.00	$       900.00
					100	$   12.00	$ 1,200.00
May-15	Purchase	200	$              13.00	$      2,600.00				75	$   12.00	$       900.00
								200	$   13.00	$    2,600.00
May-20	Sales				200	$   13.00	$ 2,600.00	25	$   12.00	$       300.00
					50	$   12.00	$    600.00
May-15	Purchase	150	$              13.50	$      2,025.00				25	$   12.00	$       300.00
								150	$   13.50	$   2,025.00
	Total						$ 6,500.00			$   2,325.00

Under LIFO method, inventory purchased first is sold first