Use the following information to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.
A) $324
B) $372
C) $320
D) $364

Question

Use the following information to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
 Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.
A) $324 
B) $372 
C) $320 
D) $364

Quizplus · Accepted Answer

Since the company is using LIFO inventory cost method, the latest purchases will be treated as sold first. Therefore, the cost of the last 6 units sold (May 29 and May 31) will be $60 each, totaling $360. This leaves the remaining 6 units as the ending inventory, which has a cost of $4 each, totaling $24. Thus, the ending inventory for May using LIFO is $364.

Use the Following Information to Answer the Following Questions