Use this inventory information for the month of March to answer the following question.
-Assume that a periodic inventory system is used.
What is ending inventory under the LIFO method?
A)$1,680
B)$1,980
C)More information is needed.
D)$2,720

Question

Use this inventory information for the month of March to answer the following question.  
-Assume that a periodic inventory system is used.
What is ending inventory under the LIFO method?
A)$1,680 
B)$1,980 
C)More information is needed. 
D)$2,720

Quizplus · Accepted Answer

Under LIFO method, the cost of the most recent (latest) inventory is used to calculate ending inventory. Therefore, the last 20 units of Item A purchased at $99 each are used to calculate the ending inventory as follows:
20 units x $99 = $1,980.

Use This Inventory Information for the Month of March to Answer