Maddox Company uses the perpetual inventory method. Maddox purchased 500 units of inventory that cost $2.00 each. At a later date the company purchased an additional 600 units of inventory that cost $2.50 each. If Maddox uses a LIFO cost flow method, and sells 800 units of inventory, the amount of ending inventory appearing on the balance sheet will be:

Question

Quizplus · Accepted Answer

500 units + 600 units - 800 units sold = 300 units in ending inventory; 300 units x $2.00 = $600

Maddox Company Uses the Perpetual Inventory Method