Question

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO. Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 150 units @ $10.00 5 Purchase 220 units @ $12.00 10 Sales 140 units @ $20.00 15 Purchase 100 units @ $13.00 24 Sales 90 units @ $21.00

Multiple Choice $2,980 $2,460 $2,860 $5,440 $2,590

Answer 1

Cost of ending inventory using LIFO = $2,590

LIFO Method Inventory Schedule

Date	Qty Purchased	Unit Cost	Total Cost	Qty Sold	Unit cost	Cost of goods sold	Ending Inv.Qty	Unit Cost	Total Inventory
May 1							150	10	1,500
May 5	220	12	2,640				150	10	1,500
							220	12	2,640
May 10				140	12	1,680	150	10	1,500
							80	12	960
May 15	100	13	1,300				150	10	1,500
							80	12	960
							100	13	1,300
May 24				90	13	1,170	150	10	1,500
							80	12	960
							10	13	130
TOTAL							240		$2,590

“Hence, the Answer is $2,590 “