Lauer Corporation has provided the following information about one of its laptop computers: During the year,Lauer sold 750 laptop computers.
-
What was ending inventory using the LIFO cost flow assumption?
A)$40,000.
B)$45,000.
C)$55,000.
D)$60,000.

Question

Lauer Corporation has provided the following information about one of its laptop computers:  During the year,Lauer sold 750 laptop computers.
-
What was ending inventory using the LIFO cost flow assumption?
A)$40,000. 
B)$45,000. 
C)$55,000. 
D)$60,000.

Quizplus · Accepted Answer

Under the LIFO (Last-In, First-Out) cost flow assumption, the most recently purchased inventory is used up first. Therefore, the ending inventory is valued at the cost of the oldest inventory, which is typically lower, resulting in a lower ending inventory value.

Lauer Corporation Has Provided the Following Information About One of Its