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Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of product A during the month of January were as follows: Units Unit cost Jan. 10 200 $22 18 250 23 28 100 24
A physical count on January 31, year 2, shows 250 units of product A on hand. The cost of the inventory at January 31, year 2, under the LIFO method is

a. $5,850b. $5,550c. $5,350d. $5,250

Respuesta :

Answer:

a. $5,850

Explanation:

Under the LIFO Method, the cost of good sold equals to  

= January 28 units × cost per unit + Remaining units × cost per unit  

= 100 units × $24 + 150 units × $23

= $2,400 + $3,450

= $5,850

Since the firm has sold 250 units, so out of which 100 units sold at a price of $24 and the remaining 150 units sold at a price of $23

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