Information relating to the beginning inventory and purchase of inventory by Marigold Corp. is as follows:
Calculate the cost of 100 units in the ending inventory by the last-in, first-out (LIFO) method of inventory valuation.
$$\begin{array} { l l l }
\text { Specific Purchase } & \text { Number of Units } & \text { Cost per Unit } \
\text { Beginning inventory } & 20 & \$ 50 \
\text { First purchase } & 60 & \$ 60 \
\text { Second purchase } & 55 & \$ 80
\end{array}$$

Question

Information relating to the beginning inventory and purchase of inventory by Marigold Corp. is as follows:
Calculate the cost of 100 units in the ending inventory by the last-in, first-out (LIFO) method of inventory valuation.
 $$\begin{array} { l l l } 
\text { Specific Purchase } & \text { Number of Units } & \text { Cost per Unit } \
\text { Beginning inventory } & 20 & \$ 50 \
\text { First purchase } & 60 & \$ 60 \
\text { Second purchase } & 55 & \$ 80
\end{array}$$

Quizplus · Accepted Answer

The Answer is Cost of ending inventory of 100 units = (20 units of beginning inventory × Cost per unit of beginning inventory) + (60 units of first purchase × Cost per unit of first purchase) + (20 units of second purchase × Cost per unit of second purchase) = (20 units × $50) + (60 units × $60) + (20 units × $80) = $1,000 + $3,600 + $1,600 = $6,200​

Information Relating to the Beginning Inventory and Purchase of Inventory