Question:
If Thomas uses a last-in, first-out periodic inventory system, the total cost of the inventory for carburetor
2642J at March 31 is
a. $196,115
b. $197,488
c. $201,300
d. $268,400
Answer:
a. The ending inventory consists of 3,050 units (beginning inventory plus purchases, minus sales).
Under the periodic LIFO method, those units are valued at the oldest prices for the period,
which is $64.30 of the beginning inventory. Multiplying $64.30 times 3,050 units produces a
total inventory value of $196,115.
If Thomas uses a last-in, first-out periodic inventory system, the total cost of the inventory for carburetor
2642J at March 31 is
a. $196,115
b. $197,488
c. $201,300
d. $268,400
Answer:
a. The ending inventory consists of 3,050 units (beginning inventory plus purchases, minus sales).
Under the periodic LIFO method, those units are valued at the oldest prices for the period,
which is $64.30 of the beginning inventory. Multiplying $64.30 times 3,050 units produces a
total inventory value of $196,115.
