Question

Inventory records for Dunbar Incorporated revealed the following:

Date Transaction Number ofUnits Unit Cost
Apr. 1 Beginning inventory 500 $2.13
Apr. 20 Purchase 310 2.63

Dunbar sold 620 units of inventory during the month. Ending inventory assuming LIFO would be (Do not round your intermediate calculations. Round your answer to the nearest dollar amount):

Answer 1

Ending inventory= $404.7

Step-by-step explanation:

Giving the following information:

Date Transaction Number of Units Unit Cost

Apr. 1: Beginning inventory 500units at $2.13

Apr. 20 Purchase 310 units at $2.63

Dunbar sold 620 units of inventory during the month.

What is the ending inventory assuming LIFO (last in, first out)?

Ending inventory (in units)= beginning inventory + purchase - sold units

Ending inventory (in units)= 500 + 310 - 620= 190 units

Ending inventory ($)= 190*2.13= $404.7