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In: Accounting

The inventory transactions of VTS Corporation are shown below. Date Transaction Number of Units Unit Cost/Price...

The inventory transactions of VTS Corporation are shown below.

Date Transaction Number of Units Unit Cost/Price
Jan. 1 Beginning inventory 500 $ 10
Feb. 25 Sale 300 20
May 21 Purchase 400 12
Jul. 15 Purchase 500 15
Dec. 10 Sale 800 20


All purchase/sale transactions are made on credit. The company uses the FIFO method and perpetual inventory system to record transactions. What is the amount of LIFO adjustment needed to adjust FIFO inventory records reported for the year to LIFO for external reporting purposes?

a) 1,300

b) 4,500

c) 3,000

d) 1,000

Solutions

Expert Solution

Option a] is correct,

Please find the attached sheet for detailed answer,

Thanks,

ekkarill92 answered 1 year ago
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