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Maddox Company uses the perpetual inventory method. Maddox purchased 500 units of inventory that cost $2.00 each. At a later date the company purchased an additional 600 units of inventory that cost $2.50 each. If Maddox uses a LIFO cost flow method, and sells 800 units of inventory, the amount of ending inventory appearing on the balance sheet will be: $1,900. $675. $600. $750.

Respuesta :

Answer:

Ending inventory = $600

correct option is $600

Explanation:

given data

inventory purchased = 500 units

inventory cost = $2.00

sells = 800 units

purchased  additional  = 600 units

cost =  $2.50

solution

Number of ending inventory    

Total Purchase = 500 + 600 = 1100  

total Units sold = 800  

so that Ending inventory units will be

Ending inventory units = 1100 - 800 = 300  

so we can say that Ending inventory

Ending inventory = 300 units @ 2.00

Ending inventory = $600

correct option is $600

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