Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

40 units at $100
70 units at $80
170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.
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Ending inventory using the LIFO method is:
A) $650.
B) $1,000.
C) $707.
D) $600.

Question

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

40 units at $100 
70 units at $80 
170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.
-

Ending inventory using the LIFO method is:
A) $650.
B) $1,000.
C) $707.
D) $600.

Quizplus · Accepted Answer

[(40 × $100) + (70 × $80) + (170 × $60)] = $19,800 ÷ 280 units = $70.71 per unit
10 units × $70.71 = $707 (rounded)