beginning inventory 10 units @ $10 per unit first purchase 35 units @ $11 per unit first sale 20 units…

beginning inventory 10 units @ $10 per unit first purchase 35 units @ $11 per unit first sale 20 units second purchase 40 units @ $12 per unit second sale 35 units third purchase 15 units @ $13 per unit what is the value of the ending inventory using a perpetual inventory system with the lifo costing method? $485 $555 $520 $540 none of the above

beginning inventory 10 units @ $10 per unit first purchase 35 units @ $11 per unit first sale 20 units second purchase 40 units @ $12 per unit second sale 35 units third purchase 15 units @ $13 per unit what is the value of the ending inventory using a perpetual inventory system with the lifo costing method? $485 $555 $520 $540 none of the above

Answer

Explanation:

Step1: Calculate units available for sale

$10 + 35+40 + 15=100$ units

Step2: Calculate total units sold

$20+35 = 55$ units

Step3: Calculate ending - inventory units

$100 - 55=45$ units

Step4: Determine cost of ending - inventory using LIFO

Under LIFO (last - in, first - out) in a perpetual system: First, consider the last purchase of 15 units at $13 per unit: $15\times13 = 195$ Then, from the second - last purchase of 40 units, we need $45 - 15=30$ units at $12 per unit: $30\times12=360$ The value of ending inventory is $195 + 360=555$

Answer:

$555$