XYZ Co. had 500 calculators, purchased at $3.5 per unit, on hand on 11/1/2019. Purchases and sales during the month of November were as follows: (Perpetual inventory system has been applied.) On 11/13 XYZ purchased 300 units at $4 per unit and on 11/21 XYZ purchased 200 units at $5. On 11/8 XYZ sold 350 units and on 11/28 XYZ sold another 100 units. How much is the ending inventory at 11/30/2019 under LIFO

Value of ending inventory at 11/30/2019 using LIFO is $1,950

Explanation:

The calculators sold on 11/8 were taken from  purchases of 11/21,200 units and purchases of 11/13,150 units,thereby leaving 150 units of calculators purchased on 11/13 in inventory.

However,the sale of 100 calculators on 11/28 were picked from the balance of 150 units left from stock of 11/13 thereby leaving 50 units purchased at $4 each and the opening inventory in closing inventory.

The computation of closing inventory value:

11/13/2019 50 calculators at $4 = $200

11/1/2019   500 calculators at $3.5=$1,750

Value of closing inventory                  $1,950

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