Given the following information, what would the ending inventory value be on December 31 under the LIFO method in a periodic inventory system? $$\begin{array} { | l | l | }
\hline \text { Dates } & \text { Units of Inventory } \
\hline \text { Opening Inventory } & 200 \text { units at } \$ 5.00 \
\hline \text { Purchases: } & \
\hline \text { April } 12 & 300 \text { units at } \$ 5.10 \
\hline \text { July 7 } & 400 \text { units at } \$ 5.25 \
\hline \text { Sales: }& \
\hline \text { August } 12 & 100 \text { units at } \$ 8.00 \
\hline \text { December } 15 & 500 \text { units at } \$ 8.20 \
\hline
\end{array}$$
A)$1,510
B)$1,575
C)$2,075
D)$3,120

Question

Given the following information, what would the ending inventory value be on December 31 under the LIFO method in a periodic inventory system? $$\begin{array} { | l | l | } 
\hline \text { Dates } & \text { Units of Inventory } \
\hline \text { Opening Inventory } & 200 \text { units at } \$ 5.00 \
\hline \text { Purchases: } & \
\hline  \text { April } 12 & 300 \text { units at } \$ 5.10 \
\hline \text {  July 7 } & 400 \text { units at } \$ 5.25 \
\hline \text { Sales: }& \
\hline \text { August } 12 & 100 \text { units at } \$ 8.00 \
\hline \text { December } 15 & 500 \text { units at } \$ 8.20 \
\hline
\end{array}$$
A)$1,510
B)$1,575
C)$2,075
D)$3,120

Quizplus · Accepted Answer

The correct answer is A because under the LIFO method, the most recently purchased units are assumed to be the first sold. Therefore, the ending inventory would consist of the 200 units from the opening inventory (at $5.00 per unit) and 100 units from the April 12 purchase (at $5.10 per unit). The total ending inventory value would be 200 x $5.00 + 100 x $5.10 = $1,510.

Given the Following Information, What Would the Ending Inventory Value