A company purchased 100 units for $30 each on January 31.It purchased 400 units for $20 each on February 28.It sold a total of 470 units for $110 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

C)The units in ending merchandise inventory are 30 units that were purchased on January 31 for $30 per unit.
Ending Merchandise Inventory = 30 units × $30 = $900

A Company Purchased 100 Units for $30 Each on January