Quan uses a periodic inventory system.At the end of April, Quan had 20 units on hand. April $\begin{array}{ll}
1&\text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \
19&\text { Purchased } 90 \text { units } @ \$ 3 \text { each } & \$ 270 \
&\text { Goods available for sale } & \$ 290
\end{array}$ ? If Quan uses the LIFO inventory method, how much is inventory on the balance sheet as of April 30?
A) $50
B) $40
C) $60
D) $58

Question

Quizplus · Accepted Answer

The LIFO method assumes that the last units purchased are the first units sold. Therefore, the 20 units on hand at the end of April were purchased on April 19 at a cost of $3 each. The remaining 90 units were purchased on April 1 at a cost of $2 each. Therefore, the inventory on the balance sheet as of April 30 is $20 + (20 x $3) = $80.

Quan Uses a Periodic Inventory System ? If Quan Uses the LIFO Inventory Method, How Much