Consider the following information Date Particulars Units Rate per unit in rs Ja...........

General Accounting Principles Others

Consider the following information :

Date	Particulars	Units	Rate per unit (in rs)
Jan. 1	Inventory in hand	200	7
Jan. 8	Purchases	1100	8
Jan. 25	Purchases	300	9
Jan. 6	Issued for sale	100	-
Jan. 9	Issued for sale	200	-

Which one of the following is the value of inventory on January 31 under perpetual inventory system using Last-In-First-Out (LIFO) method?

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EPFO APFC 2023

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Rs 6,600

Rs 8,600

Rs 10,600

Rs 12,000

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Explanation:

To calculate the inventory value using the Last-In-First-Out (LIFO) method under a perpetual inventory system, inventory is issued from the most recent purchases first:

1. Starting Inventory (Jan. 1): 200 units at Rs 7 = Rs 1,400

2. Purchases (Jan. 8): 1100 units at Rs 8 = Rs 8,800

3. Purchases (Jan. 25): 300 units at Rs 9 = Rs 2,700

4. Issued (Jan. 6): 100 units from starting inventory at Rs 7/unit

- Remaining: 100 units from starting inventory

5. Issued (Jan. 9): 200 units from Jan. 8 purchase at Rs 8/unit

- Remaining: 900 units from Jan. 8 purchase + 100 units from starting inventory

Inventory on Jan. 31:

- 100 units (starting inventory) at Rs 7 = Rs 700

- 900 units (from Jan. 8) at Rs 8 = Rs 7,200

- 300 units (from Jan. 25) at Rs 9 = Rs 2,700

Total inventory value = Rs 700 + Rs 7,200 + Rs 2,700 = Rs 10,600