3) A firm has beginning inventory of 300 units at a cost of $11 each. Production during the period was 650 units at $12 each. If sales were 700 units, what is the value of the ending inventory using LIFO?

A. $3,300
B. $2,750
C. $3,250
D. $2,550

LIFO = Last In First Out.

Whatever you just bought, or made, is what you sell next.

If I start with 5 units @$10,
then buy 7 @$20,
then sell 10,

which 10 do I sell?

I sell the _last_ 10 that I got, which will be the 7@$20 and 3 of the 5 @$10.

That will leave me with the first two I bought, which I valued @ $10 each.

Now look at your question again. Which 700 were sold? Which 250 were left?

It is B. $2,750

To find the value of the ending inventory using LIFO, we need to start by calculating the cost of goods sold (COGS). COGS is calculated by multiplying the units sold by the cost per unit.

COGS = Units sold * Cost per unit
COGS = 700 * $12
COGS = $8,400

Next, we need to calculate the value of the remaining inventory using LIFO. LIFO assumes that the most recently purchased units are sold first. In this case, the 650 units produced during the period are added to the beginning inventory of 300 units, resulting in a total of 950 units.

The most recently purchased units, 650, are sold first, leaving 300 units in the ending inventory. Since LIFO values the ending inventory based on the most recent costs, we need to multiply the number of remaining units by the most recent cost per unit.

Ending inventory value = Remaining units * Cost per unit
Ending inventory value = 300 * $12
Ending inventory value = $3,600

Therefore, the value of the ending inventory using LIFO is $3,600.

None of the provided options match the correct answer.

To calculate the value of ending inventory using LIFO (Last-In, First-Out), we need to assume that the most recently acquired units are the ones sold first. Here's how we can calculate it step by step:

1. Begin by calculating the cost of the goods sold (COGS):
COGS = (Beginning inventory * Cost per unit) + Production during the period
COGS = (300 units * $11 per unit) + (650 units * $12 per unit)
COGS = $3,300 + $7,800
COGS = $11,100

2. Next, determine the number of units remaining in the ending inventory:
Units remaining = Beginning inventory + Production during the period - Sales
Units remaining = 300 units + 650 units - 700 units
Units remaining = 250 units

3. Finally, calculate the value of the ending inventory:
Value of ending inventory = Units remaining * Cost per unit
Value of ending inventory = 250 units * $12 per unit
Value of ending inventory = $3,000

Therefore, the value of the ending inventory using LIFO is $3,000.
Hence, the correct answer is not provided in the options given.