Amiable Inc.uses a perpetual inventory system.The following transactions took place during the month of August: $\begin{array}{|l|l|}
\hline \text { August } 2 & 25 \text { units were purchased at } \$ 12 \text { per unit } \
\hline \text { August } 5 & 10 \text { units were purchased at } \$ 13 \text { per unit } \
\hline \text { August } 15 & 12 \text { units were sold at } \$ 25 \text { per unit } \
\hline \text { August } 18 & 15 \text { units were purchased at } \$ 14 \text { per unit } \
\hline
\end{array}$ If Amiable uses the LIFO method,what is the ending inventory at August 31?

Question

Quizplus · Accepted Answer

Under the LIFO (Last-In, First-Out) method, the most recently purchased items are sold first. By the end of August, Amiable Inc. has sold 12 units, so we calculate the cost of goods sold and ending inventory based on the last purchases first. The ending inventory will consist of the earliest purchases: 25 units at $12 each and 10 units at $13 each, totaling $486.00 (25*$12 + 10*$13 = $300 + $130 = $430).

Amiable Inc If Amiable Uses the LIFO Method,what Is the Ending Inventory