question archive 4) Sanfillipo, Inc
4) Sanfillipo, Inc
Subject:AccountingPrice:2.84 Bought7
4) Sanfillipo, Inc., had 800 units of inventory on hand at March 1 of the current year, costing $20 each. Purchases and sales of inventory during the month of March were as follows:
Date Purchases Sales
March 8 600 units
15 400 units @ $22 each
22 400 units @ $24 each
27 400 units
Sanfillipo uses the periodic inventory system. According to a physical count, 600 units were on hand at the end of March.
The cost of inventory at the end of March applying the LIFO method is:
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Ending Inventory Periodic LIFO 12,000
Step-by-step explanation
under LIFO periodic we should wait until the entire year is over before assigning the costs and do physical count. here in the problem we can calculate the ending inventory using by:
Ending inventory March 30 periodic 600 units
multiply by: cost per unit of beginning inventory $20
Ending Inventory Periodic LIFO $12,000
