Thelen's inventory records show the following data at January 31:
Beginning inventory Jan. 1 120 units at $6 per unit
Jan. 10 purchase 320 units at $11 per unit
Jan. 22 purchase 110 units at $12 per unit
At January 31, 240 units are still on hand. What is the cost of the ending inventory at January 31 if Thelen uses the LIFO method?
A) $1440
B) $2040
C) $2880
D) $2160
B
Explanation: B) (120 × $6 ) + (120 × $11 ) = $2040
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