Jones Company has the following data available: If Jones Company uses a perpetual LIFO inventory system,the cost of ending inventory on October 31 is ________.
A)$14,800
B)$18,500
C)$15,000
D)$66,900

Question

Jones Company has the following data available:  If Jones Company uses a perpetual LIFO inventory system,the cost of ending inventory on October 31 is ________.
A)$14,800 
B)$18,500 
C)$15,000 
D)$66,900

Quizplus · Accepted Answer

Since it is a perpetual LIFO inventory system, the cost of the most recent inventory purchases is used to calculate the cost of goods sold. Therefore, the cost of the earlier inventory purchases is used to calculate the cost of ending inventory. Based on the available data, the cost of the earlier inventory purchases is $15,000, hence the cost of ending inventory on October 31 is $15,000.

Jones Company Has the Following Data Available: If Jones