Netta Shutters has the following inventory information. $$\begin{array} { r l l }
\text { Nov. } 1 & \text { Inventory } & 30 \text { units @ \$8.00 } \
8 & \text { Purchase } & 120 \text { units @ \$8.30 } \
17 & \text { Purchase } & 60 \text { units @ \$8.40 } \
25 & \text { Purchase } & 90 \text { units @ \$8.80 }
\end{array}$$ A physical count of merchandise inventory on November 30 reveals that there are 90 units on hand. Assume a periodic inventory system is used. Ending inventory under LIFO is
A) $738.
B) $792.
C) $1,740.
D) $1,794.

Question

Netta Shutters has the following inventory information. $$\begin{array} { r l l } 
\text { Nov. } 1 & \text { Inventory } & 30 \text { units @ \$8.00 } \
8 & \text { Purchase } & 120 \text { units @ \$8.30 } \
17 & \text { Purchase } & 60 \text { units @ \$8.40 } \
25 & \text { Purchase } & 90 \text { units @ \$8.80 }
\end{array}$$ A physical count of merchandise inventory on November 30 reveals that there are 90 units on hand. Assume a periodic inventory system is used. Ending inventory under LIFO is
A) $738.
B) $792.
C) $1,740.
D) $1,794.

Quizplus · Accepted Answer

Under LIFO, the last items purchased are the first to be counted as sold. Therefore, the ending inventory consists of the oldest costs: 30 units @ $8.00 and 60 units @ $8.30, totaling $738.

Netta Shutters Has the Following Inventory Information A Physical Count of Merchandise Inventory on November 30 Reveals