k: A manufacture has the following commodity inventory accounts.June 1Balance on hand500 units at 100 per unitJune 12June 25July 6July 15Aug. 3Aug. 19PurchasedDelivered to shopPurchasedDelivered to shopPurchasedDelivered to shop500 units at 125 per unit500 units500 units at 110 per unit600 units500 units at 105 per unit600 unitsWhat is the value of the inventory on August 20 if the last in first out method of evaluation is used? Show your completecomputation.

Last in First Out (LIFO) is one of the method of valuation of inventory. Under this method, Closing…

Answered: What is the value of the inventory on…

What is the value of the inventory on August 20 if the last in first out method of evaluation is used? Show your complete computation.

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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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

k: A manufacture has the following commodity inventory accounts.
June 1
Balance on hand
500 units at 100 per unit
June 12
June 25
July 6
July 15
Aug. 3
Aug. 19
Purchased
Delivered to shop
Purchased
Delivered to shop
Purchased
Delivered to shop
500 units at 125 per unit
500 units
500 units at 110 per unit
600 units
500 units at 105 per unit
600 units
What is the value of the inventory on August 20 if the last in first out method of evaluation is used? Show your complete
computation.

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