Lalo begins operations in 2ooy and uses es are 2004 2005 200

Lalo begins operations in 2ooy and uses es are:____ 2004 2005 2006. July 500$5.900x112-600x$14 September200 1.-100x19-700x5 13 November 1400__100)_10-100x316 Ldo\'s Dec.31,200% ernding inventny is 300units Dec 3,2005 ending inventry is MO unrs Dec 31, 200h uoling mentis E00 unts louer thon 2oos Egnting mertey coot) What is Luto\'s Dec 31, 2006.ending ynventaty 0) 600 b)4300 )4400 )3600

Solution

d). $3600 , Dec 31,2006 ending inventory = $3600

Dec31,2004 ending inventory cost (LIFO) = 300 units from Mar at $4 = $1200

Dec31,2005 ending inventory cost (LIFO) = 300 units from beginning inventory at $4 = $1200

= 500 units from Mar at $8 = $4000

800 units = $5200

Dec31,2006 ending inventory cost (LIFO) = 300 units from 2004 inventory at $4 = $1200

[500-200] 300 units from 2005 inventory at $8 = $2400

600 units    =$3600

	2004	2005	2006
Beginning inventory	0	300	800
Total purchased units	1400	2300	2300
less: Ending inventory	300	800	600
Sold units	1100	1800	2500