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Assume that Bee Bees Fish Store uses a periodic LIFO inventory system. Its ending inventory consists of 13 fish. Calculate the dollar value of its ending inventory.  DateActivity Jan. 1Beginning Inventory10 @ $12Jan. 5Purchase10 @ $15Jan. 30Purchase10 @ $18Jan. 8Sale17 fishMultiple choice question.$130$285$165$225

Question

Assume that Bee Bees Fish Store uses a periodic LIFO inventory system. Its ending inventory consists of 13 fish. Calculate the dollar value of its ending inventory.  DateActivity Jan. 1Beginning Inventory10 @ 12Jan.5Purchase10@12Jan. 5Purchase10 @ 15Jan. 30Purchase10 @ 18Jan.8Sale17fishMultiplechoicequestion.18Jan. 8Sale17 fishMultiple choice question.130285285165$225

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Solution

To calculate the dollar value of the ending inventory using the LIFO (Last In, First Out) method, we start by subtracting the number of fish sold from the total number of fish purchased and in beginning inventory.

Here's the step-by-step calculation:

  1. Calculate the total number of fish at the beginning and purchased: 10 (beginning) + 10 (Jan. 5 purchase) + 10 (Jan. 30 purchase) = 30 fish
  2. Subtract the number of fish sold: 30 fish - 17 fish (sold) = 13 fish
  3. The 13 fish in the ending inventory are valued at the prices of the most recently purchased fish (LIFO). So, the first 10 fish are valued at 18each(fromtheJan.30purchase)andtheremaining3fisharevaluedat18 each (from the Jan. 30 purchase) and the remaining 3 fish are valued at 15 each (from the Jan. 5 purchase).
  4. Calculate the total value: (10 fish * 18)+(3fish∗18) + (3 fish * 15) = 180+180 + 45 = $225

So, the dollar value of the ending inventory is $225.

This problem has been solved

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