If this is a LIFO calculation, why are the unit costs taken from earlier quarters–Shouldn’t start from Q4? Thanks in advance. Question 5 L1FR-PQ2918-1410 Quarter** Units Held/Purchased****Unit Cost ()****Total Cost () Opening Inventory 15 30 450 1 15 30 450 2 12 35 420 3 20 25 500 4 30 20 600 Total 92 2,420**
Given that Tiara sold 10, 12, 15, and 20 units in the four quarters respectively, answer the following questions:
Ending inventory if the company uses LIFO cost flow assumption is closest to:
$725 $834 $1,075 You Answered Correctly!
Ending inventory consists of 92 – 57 = 35 units
Ending inventory value using LIFO = (15 × 30) + (15 × 30) + (5 × 35) = $1,075