Question

The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 5 $20 May 10 Sale 3 May 17 Purchase 10 $24 May 20 Sale 6 May 23 Sale 3 May 30 Purchase 10 $30 Assuming that the company uses the perpetual inventory system, determine the May 31 inventory balance using the LIFO inventory cost method.

Answer 1

Answer:

$40.4

Explanation:

The company had no beginning inventory on May 1.

 Date    Blankets   Units  Cost  Balance

May 3    Purchase      5     $20

May 10   Sale              3                   2

May 17   Purchase     10    $24       12

May 20  Sale              6                   6

May 23  Sale              3                   3

May 30  Purchase    10    $30       13

Assuming that the company uses the perpetual inventory system, determine the May 31 inventory balance using the LIFO inventory cost method.

The balance stock of 13 units as at May 31 is made up of 10 units purchased on the 30th at $3 each + 1 unit purchased on May 17 at $2.4 each and 2 units purchased on May 3 at $4 each

Closing stock = (10 x 3) + (1 x 2.4) + (2 x 4) = $40.4

Answer 2

Answer:

The closing inventory(May 31st) is 13 blankets and the value of closing inventory is $364.00

Explanation:

As this tends to involve the use of tables,picture attachments are used for better clarification