Answer:
$1,530
Explanation:
LIFO is a method of allocating costs to inventory. With this approach, the cost of the most recent ones are first to be expensed if sales occur. With the data given, the first 80 units to be sold will be expensed at $80 each and the cost of the next 36 units will be $65 each and so on.
Given an ending inventory of 22 units, 20 out of 22 will cost $70 a unit yielding a total of $1,400 and the remaining 2 will be at a cost of $65 a unit.
Total cost of ending inventory = (20 *$70 ) +(2*$65) = $1400 + $130
= $1,530
