Question

West and Company uses the LIFO method to calculate inventory values. Their beggining inventory consisted of 200 units at a cost of $9.00 each. Purchases included 300 units at $10.00 each on February 18

Answer 1

Answer:

The total inventory is 200 + 300 + 400 + 100 = 1000.

Step-by-step explanation:

If 300 units remained, the we calculate the cost of the 700 sold via LIFO. These 700 units include the 100 units at $12.00, the 400 units at $11.00, and 200 units at $10.00 (out of the 300 purchased). This is a total cost of 100*12 + 400*11 + 200*10 = 1200 + 4400 + 2000 = $7600.