Question

The following lots of a particular commodity were available for sale during the year

Beginning inventory	11 units at $49.00
First purchase	18 units at $53.00
Second purchase	50 units at $57.00
Third purchase	14 units at $60.00

The firm uses the periodic system, and there are 27 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the LIFO method?

Select the correct answer.

$5,183.00

$1,387.00

$1,581.00

$1,323.00

Answer 1

• Correct Answer = Option #2: $ 1387 = Ending inventory as per LIFO

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	11	$                49.00	$                            539.00	0	$               49.00	$                              -	11	$                 49.00	$                539.00
Purchases:
#1	18	$                53.00	$                            954.00	2	$               53.00	$                     106.00	16	$                 53.00	$                848.00
#2	50	$                57.00	$                        2,850.00	50	$               57.00	$                 2,850.00	0	$                 57.00	$                         -
#3	14	$                60.00	$                            840.00	14	$               60.00	$                     840.00	0	$                 60.00	$                         -
TOTAL	93		$                        5,183.00	66		$                 3,796.00	27		$           1,387.00 [ANSWER]