I would appreciate any help I could get on these. This stuff really confuses me.


Aug. 1 Balance 200@$3.20
Aug. 2 150@$5.50 Sales
Aug. 4 550@$3.10 Purchases
Aug. 5 [email protected] Sales
Aug. 7 [email protected] Purchases
Aug. 8 [email protected] Sales
Aug. 12 [email protected] Sales
Aug. 13 [email protected] Purchases
Aug. 20 [email protected] Sales
Aug. 21 [email protected] Purchases
Aug. 29 [email protected] Sales

If a periodic inventory system is used, the LIFO basis ending inventory is ___________.
a)$1027.50 b)$1040.00 c)$1072.50 d)1117.50

If a perpetual inventory system is used, the LIFO basis ending inventory is __________.
a)$1027.50 b)$1040.00 c)$1072.50 d)1117.50

If a perpetual inventory system is used, the FIFO basis ending inventory is __________.
a)$1027.50 b)$1040.00 c)$1117.50 d)$1137.50

Ending Inventory is 325 units.

Periodic Inventory, LIFO method
LIFO - take the value of the FIRST 325 units, as they are sold last so they are still on hand.

Quote:

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Aug. 1 Balance 200@$3.20
Aug. 2 150@$5.50 Sales
Aug. 4 550@$3.10 Purchases

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200 @ 3.20 = $640
125 @ 3.10 = $387.50
Total = $1,027.50

Quote:

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Originally Posted by CaptainForest

ANSWER: A: $1,027.50

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Thanks so much for help with that question. I greatly appreciate it.