$\begin{array}{l}
\begin{array}{lll}
\text { Sep. } & 1& \text { Inventory } \
&4 & \text { Sold } \
& 10 & \text { Purchased } \
& 17 & \text { Sold } \
& 30 & \text { Purchased } \
\end{array}
\begin{array}{lll}
\quad\quad\quad\quad\quad\quad\
\end{array}

\begin{array}{lll}
20& \text { units at \$20 } \
10& \text { units } \
30& \text { units at \$25 } \
20& \text { units } \
10& \text { units at \$30 } \
\end{array}
\end{array}$
-If Addison uses LIFO,the cost of the ending merchandise inventory on September 30 is
A)$800
B)$650
C)$750
D)$700

Question

$\begin{array}{l}
\begin{array}{lll}
\text {   Sep.  } &  1& \text {  Inventory   } \
&4  & \text {   Sold  } \
& 10 & \text {  Purchased   } \
& 17 & \text {  Sold   } \
& 30 & \text {  Purchased   } \
\end{array}
\begin{array}{lll}
\quad\quad\quad\quad\quad\quad\
\end{array}

\begin{array}{lll}
20& \text { units at   \$20 } \
10& \text {  units   } \
30& \text { units at   \$25 } \
20& \text { units    } \
10& \text {  units at  \$30 } \
\end{array}
\end{array}$
-If Addison uses LIFO,the cost of the ending merchandise inventory on September 30 is
A)$800
B)$650
C)$750
D)$700

Quizplus · Accepted Answer

LIFO assumes that the last units purchased are the first units sold. Therefore, the ending inventory consists of the 20 units purchased on September 10 at $25 per unit and the 10 units purchased on September 30 at $30 per unit, for a total cost of $750.

-If Addison Uses LIFO,the Cost of the Ending Merchandise Inventory