Klump Co. Klump Co.uses a perpetual inventory system and had the following inventory transactions for the month of June.

-Refer to the information provided for Klump Co.If the company uses the LIFO inventory costing method,ending inventory at June 30th is:

Question

Klump Co. Klump Co.uses a perpetual inventory system and had the following inventory transactions for the month of June.

-Refer to the information provided for Klump Co.If the company uses the LIFO inventory costing method,ending inventory at June 30th is:

Quizplus · Accepted Answer

Using LIFO (last-in, first-out) method, we assume that the most recent inventory purchased will be sold first. Therefore, the ending inventory will be valued at the cost of the oldest inventory. 
From the inventory transactions, we can calculate the cost of goods sold (COGS) as:
Beginning inventory + Purchases - Ending inventory = COGS
$1,825.00 + $5,763.75 - Ending inventory = $5,320.00
Ending inventory = $1,811.75

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