Beginning inventory, purchases, and sales for Item MMM8 are as follows: November 1 Inventory 101 15 9 Sale 88 16 Purchase 130 8 25 Sale 80 Assuming a perpetual inventory system and using the Last-in, first-out (FIFO) method, determine the inventory value on November 30

Accounting Feb 23, 2021

Beginning inventory, purchases, and sales for Item MMM8 are as follows: November 1 Inventory 101 15 9 Sale 88 16 Purchase 130 8 25 Sale 80 Assuming a perpetual inventory system and using the Last-in, first-out (FIFO) method, determine the inventory value on November 30.
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Expert Solution

Computation of Inventory Value on November 30 using LIFO Method:

LIFO Basis:
Date	Purchases			Sales			Inventory Balance
	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost
1-Nov							101	$15	$1,515
9-Nov				88	$15	$1,320	13	$15	$195
16-Nov	130	$8	$1,040				13	15	195
							130	$8	$1,040
25-Nov				80	$8	$640	13	15	195
							50	$8	$400
Total				168		$1,960	63		$595

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