A company purchased 400 units for $20 each on January 31.It purchased 200 units for $30 each on February 28.It sold a total of 270 units for $90 each from March 1 through December 31.If the company uses the last-in,first-out inventory costing method,calculate the amount of ending inventory on December 31.(Assume that the company uses a perpetual inventory system. )

Question

Quizplus · Accepted Answer

The units in ending merchandise inventory are 330 units that were purchased on January 31 for $20 per unit.
Ending Merchandise Inventory = 330 units × $20 = $6,600

A Company Purchased 400 Units for $20 Each on January