Use the following information for questions 103 through 106.
Transactions for the month of June were:
-Assuming that perpetual inventory records are kept in units only, the ending inventory on a LIFO basis is
A) $8,220.
B) $8,320.
C) $8,580.
D) $8,940.

Question

Use the following information for questions 103 through 106.
Transactions for the month of June were: 
-Assuming that perpetual inventory records are kept in units only, the ending inventory on a LIFO basis is
A) $8,220. 
B) $8,320. 
C) $8,580. 
D) $8,940.

Quizplus · Accepted Answer

LIFO (last-in, first-out) assumes that the most recently purchased items are the first to be sold. Therefore, the ending inventory on a LIFO basis is the cost of the most recently purchased items. In this case, the most recently purchased items are the 200 units at $41.10, which totals $8,220.

Use the Following Information for Questions 103 Through 106