Question

Thelen's inventory records show the following data at January​ 31: Beginning inventory Jan. 1 110 units at $9 per unit Jan. 10 purchase 300 units at $10 per unit Jan. 22 purchase 100 units at $11 per unit At January​ 31, 220 units are still on hand. What is the cost of the ending inventory at January 31 if Thelen uses the LIFO​ method?

Answer 1

Answer:
Units available for Sale = 110 Units + 300 units + 100 Units
Units available for Sale = 510 units

Ending Inventory Units = 220 Units

Units Sold = Units available for Sale – Ending Inventory
Units Sold = 510 Units – 220 Units
Units Sold = 290 Units

Cost of Goods Sold = (100 Units * $11) + (190 units * $10)
Cost of Goods Sold = $1,100 + $1,900
Cost of Goods Sold = $3,000

Cost of Goods available for Sale = (110 * $9) + (300 * $10) + (100 * $11)
Cost of Goods available for Sale = $990 + $3,000 + $1,100
Cost of Goods available for Sale = $5,090

Cost of Ending Inventory = Cost of Goods available for sale – Cost of Goods Sold
Cost of Ending Inventory = $5,090 - $3,000
Cost of Ending Inventory = $2,090