Exhibit 8-3 Davilo Co.had the following inventory activity during April:
$\begin{array}{lll}&&\text { Unit }\&\text { Units }&\text { Cost }\
\text { Beginning inventory } & 100 & \$ 8 \
\text { Purchase (Apri1 3) } & 60 & 12 \
\text { Sale (April 10) } & 80 & \
\text { Purchase (Apri1 18) } & 50 &15 \
\text { Purchase (Apri1 23) } & 80 &18 \
\text { Sale (Apri 28) } & 100 &
\end{array}$
- Refer to Exhibit 8-3.Assuming Davilo uses a perpetual LIFO cost flow assumption, ending inventory at April 30 would be
A)$ 880
B)$ 920
C)$1, 090
D)$1, 890

Question

Exhibit 8-3 Davilo Co.had the following inventory activity during April:
$\begin{array}{lll}&&\text { Unit }\&\text { Units }&\text { Cost }\
\text { Beginning inventory } & 100 & \$ 8 \
\text { Purchase (Apri1 3) } & 60 & 12 \
\text { Sale (April 10) } & 80 & \
\text { Purchase (Apri1 18) } & 50 &15  \
\text { Purchase (Apri1 23) } & 80 &18  \
\text { Sale (Apri 28) } & 100 &
\end{array}$
- Refer to Exhibit 8-3.Assuming Davilo uses a perpetual LIFO cost flow assumption, ending inventory at April 30 would be
A)$ 880
B)$ 920
C)$1, 090
D)$1, 890

Quizplus · Accepted Answer

Under perpetual LIFO, the last items purchased are the first to be sold. After the sales, the ending inventory consists of 20 units from the April 3 purchase at $12, 50 units from the April 18 purchase at $15, and 80 units from the April 23 purchase at $18, totaling $1,090.

Exhibit 8-3 Davilo Co - Refer to Exhibit 8-3