Lowery Company
Lowery Company uses a perpetual inventory system. The following information is available for the month of March:
$$\begin{array} { l l c }
\text { Mar. } & 1 \quad \text { On hand, } 10 \text { units at \$2 each } &\$ 20 \
4 & \text { Sold } 8 \text { units for } \$ 10 \text { each } & 80 \
22 & \text { Purchased } 50 \text { units at } \$ 4 \text { each } & 200 \
26 & \text { Sold } 48 \text { units for } \$ 10 \text { each } & 480
\end{array}$$
-Refer to the information provided in the figure Lowery Company.If the company uses the LIFO inventory costing method,how much is ending inventory for the month of March?

Question

Lowery Company
Lowery Company uses a perpetual inventory system. The following information is available for the month of March:
 $$\begin{array} { l l c } 
\text { Mar. } & 1 \quad \text { On hand, } 10 \text { units at \$2 each } &\$ 20 \
4 & \text { Sold } 8 \text { units for } \$ 10 \text { each } & 80 \
22 & \text { Purchased } 50 \text { units at } \$ 4 \text { each } & 200 \
26 & \text { Sold } 48 \text { units for } \$ 10 \text { each } & 480
\end{array}$$
-Refer to the information provided in the figure Lowery Company.If the company uses the LIFO inventory costing method,how much is ending inventory for the month of March?

Quizplus · Accepted Answer

Under LIFO, the last items purchased are the first to be sold. After selling 56 units (8 on March 4 and 48 on March 26), 4 units remain from the initial 10 units at $2 each, resulting in an ending inventory of $8.

Lowery Company Lowery Company Uses a Perpetual Inventory System -Refer to the Information Provided in the Figure Lowery Company

Lowery Company
Lowery Company Uses a Perpetual Inventory System -Refer to the Information Provided in the Figure Lowery Company