Question

Exercise 2 – LIFO Perpetual

Lighting Designs by Laura has the following list of beginning inventory, purchases, and sales for the month of May:

1^st      Beginning Inventory                         500 light bulbs at $0.75

6^th      Purchase                                           300 light bulbs at $0.55

9^th      Sale                                                   650 light bulbs

12^th    Purchase                                           200 light bulbs at $0.60

16^th    Sale                                                   275 light bulbs

22^nd   Purchase                                            200 light bulbs at $0.65

30^th    Sale                                                   125 light bulbs

Calculate the cost of ending inventory using the last-in, first-out method under a perpetual inventory system.

Answer 1

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