This Question 3 pts 16 of 43 14 complete Roadside Inc had th

This Question: 3 pts 16 of 43 (14 complete) Roadside, Inc. had the following balances and transactions during 2018: Beginning Merchandise Inventory March 10 une 10 October 30 40 units at $75 Sold 38 units Purchased 80 units at $85 Sold 74 units What is the amount of the company\'s ending Merchandise I OA. $680 O B. $510 OC. $450 O D $600

Solution

LIFO Method (Periodic) :-

Last in First out

Total Units sold = 38 + 74 = 112 units

Total units available for sale = Beginning units + Purchase

      = 40 + 80 = 120 units

Ending Inventory = Total units available for sale - Total Units sold

     = 120 – 112 = 8 units

These 8 units are in Beginning Inventory

   = 8 * $75 = $ 600

Option D is correct