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 $10.50 5/5 Purchase 200 $10.50 5/10 Sales 300 $25 5/15 Purchase 200 $13.50 5/20 Sales 250 $28 5/25 Purchase 150 $12.50 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

Ending Inventory at the end of May 2019 as per LIFO Perpetual method is as follow
	Units	Rate	Amoun
	25	$     10.50	$       262.50
	150	$     12.50	$    1,875.00
Total Value of Inventory	175		$    2,137.50

Above Calculation are done on the basis of the following schedule prepared on the basis of LIFO Perpetual Inventory Method

	PURCHASE			COST OF GOODS SOLD			BALANCE
DATE	QUANTITY	UNIT COST	TOTAL COST	QUANTITY	UNIT COST	TOTAL COST	QUANTITY	UNIT COST	TOTAL COST
1-May							175	$       10.50	$    1,837.50
5-May	200	$     10.50					175	$       10.50	$    1,837.50
							200	$       10.50	$    2,100.00
10-May				300	$       10.50	$    3,150.00	75	$       10.50	$        787.50
15-May	200	$     13.50	$    2,700.00				75	$       10.50	$        787.50
							200	$       13.50	$    2,700.00
20-May				200	$       13.50	$    2,700.00
				50	$       10.50	$        525.00	25	$       10.50	$        262.50
25-May	150	$     12.50					25	$       10.50	$        262.50	Ending Inventory
							150	$       12.50	$    1,875.00	Ending Inventory

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