Salmone Company reported the following purchases and sales of its only product.Salmone uses a perpetual inventory system.

-Determine the cost assigned to ending inventory using LIFO.
A)$5,440
B)$2,460
C)$2,590
D)$2,980
E)$2,860

Question

Salmone Company reported the following purchases and sales of its only product.Salmone uses a perpetual inventory system.

-Determine the cost assigned to ending inventory using LIFO. 
A)$5,440 
B)$2,460 
C)$2,590 
D)$2,980 
E)$2,860

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) assumes the most recent inventory purchases are sold first. To calculate the ending inventory cost, we need to consider the oldest inventory costs. The correct choice is $2,590, which represents the cost of the oldest inventory remaining.

Salmone Company Reported the Following Purchases and Sales of Its