FFS Clothing Store sells socks During January 2017 its inven

FFS Clothing Store sells socks. During January 2017, its inventory records for one particular brand of socks were as follows:

Quantity Price per pair Total

Beginning Inventory 16 pairs $18 = $288

January 6 Purchase 13 pairs $16 = $208

January 10 Sale 15 pairs N/A

January 15 Purchase 18 pairs $15 = $270

January 20 Sale 22 pairs N/A

January 25 Purchase 14 pairs $22 = $308

See information for FFS Clothing Store above. Using this information, perpetual LIFO remaining inventory is

Select one: a. $371 b. $488 c. $586 d. None of these

b. $488

Working:

a.		Purchase		Sales		Inventory in hand
Date		Quantity	Price per pair	Total		Quantity	Price per pair	Total	Quantity	Price per pair	Total
	Beginning Inventory								16	$ 18	$ 288

6-Jan	Purchase	13	$ 16	$ 208					16	$ 18	$ 288
									13	$ 16	$ 208

10-Jan	Sale					13	$ 16	$ 208
						2	$ 18	$ 36	14	$ 18	$ 252

15-Jan	Purchase	18	$ 15	$ 270					14	$ 18	$ 252
									18	$ 15	$ 270

20-Jan						18	$ 15	$ 270
						4	$ 18	$ 72	10	$ 18	$ 180

25-Jan		14	$ 22	$ 308					10	$ 18	$ 180
									14	$ 22	$ 308

b.
	Inventory at the end of period:

			Quantity	Price per pair	Total
			10	$ 18	$ 180
			14	$ 22	$ 308

			24		$ 488

Under perpetual inventoy method, inventory records are updated as and when transaction takes place.
Further, LIFO stands for last in first out.It means inventory which are bought in last will be recorded as sold first.