If the company uses the LIFO costing method, what is the cost of its ending inventory?
A) $1,365.
B) $1,494.
C) $1,620.
D) $2,835.

Question

Quizplus · Accepted Answer

The LIFO (Last-In, First-Out) costing method assumes that the most recently purchased items are the first to be sold. Therefore, the ending inventory will consist of the oldest items, which were purchased at a lower cost. In this case, the ending inventory consists of 100 units at $13.65 per unit, for a total cost of $1,365.

If the Company Uses the LIFO Costing Method, What Is