Given the following information, determine the cost of ending inventory at December 31 using the LIFO perpetual inventory method. December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
A)$51.75
B)$83.22
C)$41.30
D)$94.00
E)$50.75

Question

Quizplus · Accepted Answer

Using the LIFO perpetual inventory method, the cost of ending inventory would be based on the cost of the most recent purchases, which are the 20 units purchased on December 15 at $10.15 per unit and the 10 units purchased on December 9 at $9.40 per unit, for a total of 30 units at a cost of $301.50.

Calculation: 
15 units @ $10.15 per unit = $152.25
15 units @ $9.40 per unit = $141
Total = $293.25
Cost of 2 remaining units in ending inventory = $8.25 ($4.125 per unit)
Total cost of ending inventory = $293.25 + $8.25 = $301.50

Therefore, the best choice is C.

Given the Following Information, Determine the Cost of Ending Inventory