contestada

The table below displays the purchases that Graphic DesignWorks made from
a manufacturer this year for shorts. If Graphic DesignWorks uses LIFO, and it
has 125 shorts left in its inventory, what is the value of its current stock?
Number
Month of
Purchase
Price per
short
of shorts
June
40
$11
July.
60
$12
August 80
$13
September 90
$14
O A. $1715
B. $1375
C. $1750
OD. $1485

Respuesta :

anthougo

If Graphic Design Works uses LIFO and has 125 shorts left in its inventory, the value of its current stock is D. $1485.

What is the LIFO inventory system?

The Last-In, First-Out (LIFO) method is an inventory valuation method that assumes that the last units to arrive in inventory are sold first.

The LIFO method is allowed under US GAAP.  It is the opposite of FIFO (First-in, First-Out).  The FIFO method assumes that the units bought first are the first to be sold.

Data and Calculations:

Month of                    Number    Price per        Total Cost

Purchase                  of shorts       shorts

June                             40                $11                    440 (40 x $11)

July                              60                $12                   720 (60 x $12)

August                        80                 $13                1,040 (80 x $13)

September                 90                 $14                1,260 (90 x $14)

Ending inventory      125

Using LIFO:

Value of ending inventory = $1,485 ($440 + $720 + $13 x 25)

Thus, if Graphic Design Works uses LIFO and has 125 shorts left in its inventory, the value of its current stock is D. $1485.

Learn more about the LIFO inventory method at https://brainly.com/question/6640325

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