Melbourne Company Uses the Perpetual Inventory Method

question 57

Multiple Choice

Melbourne Company uses the perpetual inventory method. Melbourne purchased 500 units of inventory that cost $4.00 each. At a later date the company purchased an additional 600 units of inventory that cost $5.00 each. If Melbourne uses a LIFO cost flow method, and sells 800 units of inventory, the amount of ending inventory appearing on the balance sheet will be:

• A) $3,800.
• B) $1.350.
• C) $1,500.
• D) $1,200.

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