Use the following information for questions.
Niles Co.has the following data related to an item of inventory:
-The value assigned to ending inventory if Niles uses LIFO is

Question

Use the following information for questions.
Niles Co.has the following data related to an item of inventory: 
-The value assigned to ending inventory if Niles uses LIFO is

Quizplus · Accepted Answer

LIFO assumes that the last units purchased are the first ones sold. Based on this assumption, the cost of goods sold will be calculated by using the cost of the last units purchased, which costs $49. The ending inventory will be valued using the cost of the first units purchased, which costs $23. Therefore, the value assigned to ending inventory using LIFO is $23 x 24 = $552.

Use the Following Information for Questions