Filmac,Inc.uses speakers when assembling computers.Information as to balances on hand,purchases,and requisitions of speakers is given in the following table. If a perpetual inventory record of speakers is maintained on a LIFO basis,the March 8 issue will consist of:
A)20 units @ $15.00 and 50 units @ $16.00.
B)70 units @ $15.00.
C)50 units @ $16.00 and 20 units @ $15.00.
D)70 units @ $16.00.

Question

Filmac,Inc.uses speakers when assembling computers.Information as to balances on hand,purchases,and requisitions of speakers is given in the following table.  If a perpetual inventory record of speakers is maintained on a LIFO basis,the March 8 issue will consist of:
A)20 units @ $15.00 and 50 units @ $16.00. 
B)70 units @ $15.00. 
C)50 units @ $16.00 and 20 units @ $15.00. 
D)70 units @ $16.00.

Quizplus · Accepted Answer

Since the perpetual inventory record of speakers is maintained on LIFO basis, the latest purchases will be matched against the issues. Therefore, the March 8 issue will consist of the 50 units purchased on February 25 at $16.00 and 20 units from the beginning inventory (earlier purchases) at $15.00. Hence, the answer is C.