# finance

posted by .

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

• finance -

LIFO = Last In First Out.

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

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?

• finance -

It is B. \$2,750

## Similar Questions

1. ### finance

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 cost of goods sold (assume FIFO)?
2. ### math

Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of \$8.00 per unit. During the year, purchases were: Feb. 20 600 units at \$9 May 5 500 units at \$10 Aug. 12 300 units at \$11 Dec. 8 200 units at \$12 Eddings …
3. ### Math

I have 2 questions involving inventory Question 1. Your a manager of an auto parts store.Figures below contains your records of the annual inventory figures for windshield wipers. Using the FIFO method of inventory pricing,hat is the …
4. ### finance

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?
5. ### Finance accounting

Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of \$8.00 per unit. During the year, purchases were: Feb. 20 600 units at \$9 Aug. 12 300 units at \$11 May 5 500 units at \$10 Dec. 8 200 units at \$12 Eddings …

Using the FIFO method of inventory pricing, what is the dollar value ending inventory if there were 300 units on hand December 31?