Question

The table below displays the purchases that Graphic DesignWorks made from

a manufacturer this year for hats. If Graphic DesignWorks uses LIFO, and it
has 100 hats left in its inventory, what is the value of its current stock?
Month of Number
Purchase of hats
June 50
July
75
August 100
September 75
Price
per hat
$12
$14
$10
$13
O A. $1225
O B. $1300
O c. $1200
O D. $1150

Answer 1

1225

Step-by-step explanation

Answer 2

B. $1300

Explanation:

The 100 hats remaining in inventory are the first 100 hats purchased in the period, so are 50 hats purchased for $12 each in June, and 50 hats purchased for $14 each in July. The value of this inventory is ...

50($12) +50($14) = $600 +700 = $1300