Question
A company sells 1,200 units during the first quarter of the year at a selling price of $25 per unit. In addition, the company has
A company sells 1,200 units during the first quarter of the year at a selling price of $25 per unit. In addition, the company has a beginning inventory of 600 units that were purchased at $10 per unit, and the following purchases and sales.
Date Units sold Units purchased Cost per unit
January 10 300 $11
January 25 450
February 7 400 $12
February 14 200
March 5 300 $14
March 27 550
If the company uses a perpetual inventory system and the LIFO method, then what is the company's ending inventory?
| a. | $4,000 | |
| b. | $5,400 | |
| c. | $4,600 | |
| d. | $4,200 | |
| e. | $4,500 |
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
11th Edition
0470004460, 978-0470004463
