A company had 22 units of inventory at a cost of $26 each on November 1.On November 2,the company purchased 27 units at $27 each.On November 6,the company purchased 23 units at $28 each.On November 8,the company sold 52 units for $71 each.Given this information,determine the cost of the 52 units sold using the LIFO periodic inventory method.
A)$1,997
B)$1,456
C)$1,436
D)$1,425
E)$1,385

Question

Quizplus · Accepted Answer

Using LIFO periodic inventory method, we will assume that the last units purchased are the first ones sold. Therefore, the cost of the 52 units sold would be:
- 23 units at $28 each = $644
- 27 units at $27 each = $729
- 2 units at $26 each = $52 (since we need 2 more units to reach 52 and the next purchase was 22 units at $26 each) 
Total cost of 52 units sold = $1,425 (Option D).

A Company Had 22 Units of Inventory at a Cost