Storme Shutters has the following inventory information. $$\begin{array} { r l r }
\text { Nov. } 1 & \text { Inventory } & 30 \text { units } @\$ 8.00 \
8 & \text { Purchase } & 120 \text { units }@\$ 8.30 \
17 & \text { Purchase } & 60 \text { units } @ \$ 8.70 \
25 & \text { Purchase } & 90 \text { units }@\$ 8.80
\end{array}$$ A physical count of merchandise inventory on November 30 reveals that there are 80 units on hand. Assume a periodic inventory system is used. Ending inventory under LIFO is
A) $655.
B) $704.
C) $1756.
D) $1812.

Question

Storme Shutters has the following inventory information. $$\begin{array} { r l r } 
\text { Nov. } 1 & \text { Inventory } & 30 \text { units } @\$ 8.00 \
8 & \text { Purchase } & 120 \text { units }@\$ 8.30 \
17 & \text { Purchase } & 60 \text { units } @ \$ 8.70 \
25 & \text { Purchase } & 90 \text { units }@\$ 8.80
\end{array}$$ A physical count of merchandise inventory on November 30 reveals that there are 80 units on hand. Assume a periodic inventory system is used. Ending inventory under LIFO is
A) $655.
B) $704.
C) $1756.
D) $1812.

Quizplus · Accepted Answer

Under the LIFO (Last-In, First-Out) method, the most recent purchases are sold first. The ending inventory consists of the earliest purchases. For 80 units:- First 30 units @ $8.00 = $240- Next 50 units (from the 120 units batch) @ $8.30 = $415Total = $240 + $415 = $655

Storme Shutters Has the Following Inventory Information A Physical Count of Merchandise Inventory on November 30 Reveals