Question

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): 42 units at $109 per unit 75 units at $72 per unit 173 units at $67 per unit Sales for the year totaled 271 units, leaving 19 units on hand at the end of the year.

Ending inventory using the LIFO method is:

Answer 1

Correct Answer:

	LIFO
Cost of Ending Inventory	$        2,071.00

Working:

Cost of Goods Available for sale
	Units	Cost per unit	value
Purchases	42	$            109.00	$            4,578.0
Purchases	75	$              72.00	$         5,400.00
Purchases	173	$              67.00	$         11,591.0
Total	290		$         21,569.0

	LIFO
A	Total Units Available for sale			290			$               21,569
	Units Sold			271
	Ending Inventory Units			19
	Valuation
	Cost of Goods Sold		173		$               67.00		11,591.00
			75		$               72.00		5,400.00
			23		$             109.00		2,507.00
B	Total Cost of Goods Sold		271	units			$         19,498.00
A-B	Ending Inventory		19	units			$            2,071.00

End of Answer.

Thanks