[The following information applies to the questions displayed below.] Singleton Company's perpetual inventory records included the following information:Date Number of units and unit costTotal costJanuary 1Beginning inventory200 units @ $7.00$1,400 March 4Purchase150 units @ $8.00$1,200 September 28Purchase350 units @ $9.00$3,150 Number of units sold during the year: 520 If Singleton uses the LIFO cost flow method, its ending inventory would be $1,260.
Answer the following statement true (T) or false (F)
True
The last-in, first-out (LIFO) cost flow method requires that the cost of the items purchased last be charged to cost of goods sold.
Units in ending inventory = Units available for sale of (200 + 150 + 350) ? Units sold of 520 = 180
Ending inventory = 180 units × January 1 unit cost of $7.00 = $1,260
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