4. Sylvia's Designs Co. had the following inventory activity during April: Units Unit Cost Beginning inventory...

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

Expert Solution

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

ekkarill92 answered 2 years ago

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