Beginning inventory=0 Quarter Purchases Sales ========= ========== ========= Qtr1 40 units at $30 13 units at $35 Qtr2 20 units at $40 35 units at $45 Qtr3 90 units at $50 60 units at $60 A) calculate the firm’s inventory value at the end of the period using the FIFO,LIFO and Weighted Average inventor cost flow assumptions. I am not clear on the way Schweser calculated LIFO. During Qtr-2, the firm forced to sell Qtr-1 inventory of 15 units that carried over from Qtr-1 because 35 units sold in Qtr-2 where purchases only 20 units.
Inventory value using LIFO: $1,280. What 3 options are given as the potential answers? And what don’t you understand?
Purchases: 40 @ 30 20 @ 40 90 @ 50 Sales in reverse order 60 -> 60 * 50 35 -> 30 * 50 + 5 * 40 13 -> 13 * 40 left 2 * 40 + 40 * 30 = 1280