A company purchased 200 units for $40 each on January 31.It purchased 200 units for $30 each on February 28.It sold a total of 250 units for $100 each from March 1 through December 31.If the company uses the last-in,first-out inventory costing method,calculate the cost 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 150 units that were purchased on January 31 for $40 per unit.
Ending Merchandise Inventory = 150 units × $40 = $6,000

A Company Purchased 200 Units for $40 Each on January