the table below displays the purchases that graphic designworks made from a manufacturer this year for…

the table below displays the purchases that graphic designworks made from a manufacturer this year for shorts. if graphic designworks uses lifo, and it has 150 shorts left in its inventory, what is the value of its current stock?\n\n| month of purchase | number of hats | price per hat |\n| ---- | ---- | ---- |\n| june | 50 | $11 |\n| july | 75 | $12 |\n| august | 100 | $13 |\n| september | 100 | $14 |\n\na. $2100\nb. $1650\nc. $2050\nd. $1775

the table below displays the purchases that graphic designworks made from a manufacturer this year for shorts. if graphic designworks uses lifo, and it has 150 shorts left in its inventory, what is the value of its current stock?\n\n| month of purchase | number of hats | price per hat |\n| ---- | ---- | ---- |\n| june | 50 | $11 |\n| july | 75 | $12 |\n| august | 100 | $13 |\n| september | 100 | $14 |\n\na. $2100\nb. $1650\nc. $2050\nd. $1775

Answer

Answer:

B. $1650

Explanation:

Step1: Understand LIFO principle

LIFO means last - in, first - out. So the last purchased items are sold first.

Step2: Calculate inventory value

We start from the earliest purchases for the remaining inventory. We have 150 shorts left. First, take 50 shorts from the June purchase at $11 each: $11\times50 = 550$. Then, take 75 shorts from the July purchase at $12 each: $12\times75=900$. We have accounted for $50 + 75=125$ shorts. We need $150-125 = 25$ more shorts. Take 25 shorts from the August purchase at $13 each: $13\times25 = 325$. The total value of the inventory is $550+900 + 325=1650$.