Question

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019:

Date	Activity	Quantity	Unit Price
5/1	Beginning Inventory	175	$11.00
5/5	Purchase	200	$12.00
5/10	Sales	300	$25
5/15	Purchase	200	$14.00
5/20	Sales	250	$28
5/25	Purchase	150	$14.00

Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.

Answer 1

Solution:

Cost of Ending Inventory = $2,375

Explanation:

Date	Purchase			Issues			Inventory
	Units	$/Unit	Total ($)	Units	$/Unit	Total ($)	Units	$/Unit	Total ($)
May-01							175	11	1925
May-05	200	12	2400				175	11	1925
							200	12	2400
May-10				200	12	2400	75	11	825
				100	11	1100
May-15	200	14	2800				75	11	825
							200	14	2800
May-20				200	14	2800	25	11	275
				50	11	550
May-25	150	14	2100				25	11	275
							150	14	2100
Total	550		7300	550		6850	175		2375