Metro Computer Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | }
\hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \
\hline \text { March } 10 & \text { Sold } 50 \text { units } \
\hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \
\hline \text { October 30 } & \text { Sold } 150 \text { units } \
\hline
\end{array}$$
- What would the company's Inventory amount be on the December 31,2014 balance sheet if the perpetual Last-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

Question

Metro Computer Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | } 
\hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \
\hline \text { March } 10 & \text { Sold } 50 \text { units } \
\hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \
\hline \text { October 30 } & \text { Sold } 150 \text { units } \
\hline
\end{array}$$
- What would the company's Inventory amount be on the December 31,2014 balance sheet if the perpetual Last-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

Quizplus · Accepted Answer

The perpetual Last-In,First-Out costing method assumes that the most recently purchased items are the first to be sold. Therefore, the ending inventory would consist of the 100 units from the beginning inventory (at $75 each) and 50 units from the June 10 purchase (at $80 each). This gives a total inventory value of $7,750.

Metro Computer Company Had the Following Balances and Transactions During