Problem
Beginning inventory, purchases, and sales for an inventory item are as follows:
|
Line Item Description
|
Units and Cost
|
|
Beginning inventory
|
150 units @ $755
|
|
Sale
|
120 units
|
|
First purchase
|
400 units @ $785
|
|
Sale
|
200 units
|
|
Second purchase
|
300 units @ $805
|
|
Sale
|
290 units
|
The firm uses the perpetual inventory system, and there are 240 units of the item on hand at the end of the year.
What is the total cost of ending inventory using LIFO?