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Question - Peabody Company uses a periodic inventory system. The company chooses to use LIFO for tax purposes; however, they maintain inventory records throughout the year using FIFO. During the month, Peabody sold 5400 units of inventory. Peabody has the following data related to an item of inventory:
Purchases
June 1 (balance) 700 @ $4.10
3 3,300 @ 4.20
15 1,700 @ 4.60
22 500 @ 4.70
What is the ending inventory value using FIFO?
What is the ending inventory value using LIFO?
What should the ending balance in the LIFO Reserve account be at June 30th?
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