In: Accounting
4. Sylvia's Designs Co. had the following inventory activity during April:
Units |
Unit Cost |
|
Beginning inventory |
100 |
$10 |
Purchase (April 3) |
50 |
12 |
Sale (April 10) |
80 |
|
Purchase (April 18) |
40 |
14 |
Purchase (April 23) |
60 |
15 |
Sale (April 28) |
120 |
Assuming Sylvia's uses a perpetual LIFO cost flow assumption, ending inventory for April would be
a. |
$ 750 |
b. |
$2,560 |
c. |
$ 500 |
d. |
$2,310 |
Answer: Correct Answer is (c) $500
Stock statement onLIFO basis | |||||||||
Purchase | Sales | Inventory | |||||||
Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
Beg Inv | 100 | $10.00 | $1,000 | ||||||
03-04 | 50 | $12.00 | $600.00 | 100 | $10.00 | $1,000 | |||
50 | $12.00 | $600.00 | |||||||
10-04 | 50 | $12.00 | $600.00 | ||||||
30 | $10.00 | $300.00 | 70 | $10.00 | $700.00 | ||||
18-04 | 40 | $14.00 | $560.00 | 70 | $10.00 | $700.00 | |||
40 | $14.00 | $560.00 | |||||||
23-Apr | 60 | $15.00 | $900.00 | 70 | $10.00 | $700.00 | |||
40 | $14.00 | $560.00 | |||||||
60 | $15.00 | $900.00 | |||||||
28-Apr | 60 | $15.00 | $900.00 | ||||||
40 | $14.00 | $560.00 | |||||||
20 | $10.00 | $200.00 | 50 | $10.00 | $500.00 | ||||
150 | 200 | 120 | 1,660 | 50 | $500.00 |