Use the following data of Seaspray Sales Inc Total Cost 7

Use the following data of Seaspray Sales, Inc: Total Cost $ 7 $ 105 280 170 Unit Units Units 15 35 17 50 Cost Sold Beginning inventory Purchase on Apr 25 Purchase on Nov 16 Sales Seaspray Sales\' LIFO cost of ending inventory would be 10 ( A. OB. C. OD. $500 $121 $141 $170

Solution

Ending inventory=(2units*8)+(15 units@$7)

which is equal to

=$121.

As per LIFO;goods purchased last are sold off first.Hence sales of 50 units would consist of 17 units purchased on Nov 16 and the balance (50-17)=33 units purchased on April 25.Hence the balance =(35-33)=2 units of April 25 and 15 units of beginning inventory.