Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at$205 each. 11 units are sold on October 4. Using the LIFO perpetual inventory method, what is the value of inventoryafter the October 4 sale?

Compute the value of ending inventory after October 4 sale under LIFO method as shown below:

Answered: Starlight Company has inventory of 8…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the LIFO perpetual inventory method, what is the value of inventory after the October 4 sale?