Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each. During the period, the company purchased inventory items as follows. Glasgow sold 220 units after purchase 3 for $17.00 each. Glasgow's ending inventory under LIFO would be:
A) $2,730.
B) $2,460.
C) $2,220.
D) $1,950.

Question

Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each. During the period, the company purchased inventory items as follows. Glasgow sold 220 units after purchase 3 for $17.00 each.  Glasgow's ending inventory under LIFO would be:
A) $2,730. 
B) $2,460. 
C) $2,220. 
D) $1,950.

Quizplus · Accepted Answer

80 units + 400 units purchased - 220 units sold = 260 units in ending inventory; (80 × $7.50) + (180 × $9.00) = $2,220

Glasgow Enterprises Started the Period with 80 Units in Beginning