Question

Inventory records for Dunbar Incorporated revealed the following:

Date Transaction Number of Units Unit Cost
Apr. 1 Beginning inventory 430 $ 2.12
Apr. 20 Purchase 450 2.69

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

$551.20

Step-by-step explanation:

For computing the ending inventory first we have to find out the ending inventory units which is shown below:

= Beginning inventory units + purchase units - sale units

= 430 units + 450 units - 620 units

= 260 units

Now the ending inventory is

= 260 units × $2.12

= $551.20

We simply multiplied the ending inventory units with the April 1 cost per unit i.e 260 units at $2.12 per unit