Inventory records for Dunbar Incorporated revealed the following: Dunbar sold 700 units of inventory during the month.Ending inventory assuming LIFO would be:

Question

Quizplus · Accepted Answer

Assuming LIFO, the cost of the last units sold will be matched with the cost of the inventory on hand, which will be the oldest units. Therefore, the ending inventory will be valued at the cost of 200 units, which is $2.40 per unit. Thus, the ending inventory would be 200 x $2.40 = $480. The correct choice is D.

Inventory Records for Dunbar Incorporated Revealed the Following: Dunbar Sold