Answer:
Inventory Cost= $52
Explanation:
Giving the following information:
April 5 $10
April 10 $12
April 15 $14
April 20 $16
April 22 $17
One unit is sold on April 25. The company uses the last-in, first-out (LIFO) inventory costing method..
Inventory Cost= 16 + 14 + 12 + 10= $52
The cost of the ending inventory on the balance sheet is $53.
The last-in, first-out (LIFO) inventory costing method is a method of determining the cost of inventory in which it is assumed that its the inventories that are purchased last are the first to be sold.
The one unit of inventory sold would be taking from the April 22 inventory. After one unit has been sold, it would remain 4 units in inventory. It would comprise of the inventories bought on April 5, 10, 15 and 20. The cost of the ending inventory is the sum of the remaining four units.
Ending inventory: $10+ $12 + $14 + $16 = $53
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