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- December 11, 2019 at 3:35 pm
Receipts and issues of a raw material for a period were:
Units $ per unit Cumulative total $
Day 1 Balance 160 3.70 592
Day 3 Receipt 230 3.60 1,420
Day 5 Issue 110
Day 8 Issue 150Using the LIFO inventory pricing method, what is the total cost of the issue on Day 8?
$545
$555
$540
$543
cant get it someone Please help
December 12, 2019 at 11:39 amLIFO: so last in first out.
At the end of Day 3 there are
160 units costing 3.70
230 units costing 3.60The day 5 issue assumes that the 110 removed come from the Day 3 receipt (LIFO). Therefore we are left with:
160 units costing 3.7
120 units costing 3.6The day 8 issue of 150 will first use the 120 remaining from Day 3 then will use 30 from the opening balance. Therefore, the cost of the issue is
120 x 3.6 + 30 x 3.7 = $543
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