A company purchased 400 units for $20 each on January 31. It

A company purchased 400 units for $20 each on January 31. It purchased 200 units for $30 each on February 28. It sold a total of 270 units for $90 each from March 1 through December 31

If the company uses the last-in, first-out inventory costing method, calculate the amount of ending inventory on December 31. (Assume that the company uses a perpetual inventory system.)
A) $9,900
B) $23,100
C) $6,600
D) $330

ANSWER

C .The units in ending merchandise inventory are 330 units that were purchased on January 31 for $20 per unit.
Ending Merchandise Inventory = 330 units × $20 = $6,600