Lionworks Enterprises had the following inventory data:

Assuming LIFO,what is the ending inventory after the July 14 sale?

Question

Lionworks Enterprises had the following inventory data:

Assuming LIFO,what is the ending inventory after the July 14 sale?

Quizplus · Accepted Answer

Since this is a LIFO inventory system, the last items purchased are the first ones sold. The July 14th sale would have been the last 4 units purchased at a cost of $53 each. Therefore, the ending inventory would be the first 5 units purchased at a cost of $40 each plus the next 2 units purchased at a cost of $45 each, which equals $214.

Lionworks Enterprises Had the Following Inventory Data