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 $11.50
5/10 Sales 300 $25
5/15 Purchase 200 $13.00
5/20 Sales 250 $28
5/25 Purchase 150 $13.00
Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.
| Date | Particular | purchases | cost of goods sold | G inventory |
| 5/1 | beginning inventory |
(175×$11) $1925 |
||
| 5/5 | purchases |
(200×$11.5) $2300 |
(175×$11=$1925) (200×$11.5 = $2300) |
|
| 5/10 | sales |
(200×11.5 = $2300) (100 ×$11 = $1100 |
75×$11 = $825 | |
| 5/15 | purchases | (200×$13)=$2600 |
(75×$11 =$825) (200×$13 =$2600) |
|
| 5/20 | sales |
200×$13= $2600 50×$11 = $550 |
25×$11 = $275 | |
| 5/25 | (150×$13 =$1950) |
(25×$11 = $275) (150×$13 = $1950) |
ending inventory under LIFO METHOD
= 25×$11+150×$13
= $275+$1950 = $2225
value of ending inventory under LIFO METHOD = $2225
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