Question

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

Answer 1

Answer:

$5,850

Explanation:

Calculation to determine what The cost of the inventory at January 31, year 2, under the LIFO method is

Using this formula

Cost of inventory= January 28 units * Cost per unit + Remaining units *Cost per unit

Let plug in the formula

Cost of inventory= 100 units * $24 + 150 units *$23

Cost of inventory= $2,400 + $3,450

Cost of inventory= $5,850

Therefore The cost of the inventory at January 31, year 2, under the LIFO method is $5,850