Eaton Electronics uses a periodic inventory system.

On March 31, Eaton has two plasma TVs on hand at a cost of $1,500 each (serial numbers 11534892 and 11534894).
In April, the company purchases four more identical TVs from Toshiba for $1,450 each (serial numbers 11542631 through 11542634).
In May, the company purchases five more identical TVs for $1,600 each (serial numbers 11550964 through 11550968).
In June, Eaton sells two of these TVs (serial numbers 11534894 and 11542631).

There were no additional purchases or sales during the remainder of the year.

Eaton Electronics uses the LIFO method. What is the cost of its ending inventory?

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anthougo anthougo · Answer 1 · 2022-07-11T17:58:28+02:00

The cost of ending inventory of Eaton Electronics on June 30 is $13,600.

The LIFO method values the cost of goods sold based on the assumption that goods sold are from the latest stock.

For example, using LIFO, Easton would have the two TVs sold based on the cost of the May Purchases instead of specific identification.

Beginning inventory (2 x $1,500) = $3,000

April Purchases (4 x $1,450) = $5,800

May Purchases (5 x $1,600)= $8,000

Cost of goods available for sale = $16,800

Cost of goods sold (2 x $1,600) = $3,200

Ending inventory = $13,600 ($16,800 - $3,200)

Thus, the cost of ending inventory is $13,600.

Learn more about the LIFO method at https://brainly.com/question/10026597

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