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what is the value of the ending inventory using LIFO?


A firm has beginning inventory of 300 units at a cost of $11 each. Production during the period was 650 units at $12 each. If sales were 700 units, what is the value of the ending inventory using LIFO?

538 day(s) ago

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vinwubulldogs 		Because LIFO stands for "Last in, First out", you have almost your entire sales covered by production at $12 each. You're only short 50 units, which you have to take from the beginning inventory at $11 each. So subtract 50 out of beginning inventory to get 250 remaining (remember, all of production was used in the sales). All of the 250 units are at a cost of $11, making ending inventory valued at 2,750.

Hope that helps. :0)

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DorthyP 		Under LIFO, the units sold in the period were a) all 650 units produced for the period plus b) 50 units of the beginning inventory. The ending inventory is the remaining 250 units from the beginning inventory @ $11 = $2,750

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