Question

Delightful Discs has the following inventory data:

             Nov. 1            Inventory                          30 units @ $6.00 each

                      8            Purchase                           120 units @ $6.45 each

                    17            Purchase                           60 units @ $6.30 each

                    25            Purchase                           90 units @ $6.60 each

A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Ending inventory under LIFO is

Answer 1

• Ending Inventory under LIFO = $ 631.50 or $ 632 (if rounded off)
• Working

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	30	$                   6.00	$                            180.00	0	$                 6.00	$                              -	30	$                   6.00	$                180.00
Purchases:
08-Nov	120	$                   6.45	$                            774.00	50	$                 6.45	$                     322.50	70	$                   6.45	$                451.50
17-Nov	60	$                   6.30	$                            378.00	60	$                 6.30	$                     378.00	0	$                   6.30	$                         -
25-Nov	90	$                   6.60	$                            594.00	90	$                 6.60	$                     594.00	0	$                   6.60	$                         -
TOTAL	300		$                        1,926.00	200		$                 1,294.50	100		$                631.50