The question asks to calculate the value of ending inventory using the LIFO (Last-In, First-Out) method.

Here’s the detailed solution:

Information provided:

1. Inventory Details:

   • Beginning Inventory (1/1/16): 200 units @ $5 = $1,000
   • Purchase (1/15/16): 100 units @ $5.30 = $530
   • Purchase (1/28/16): 100 units @ $5.50 = $550

2. Ending Inventory (1/31/16): 150 units on hand.

Using the LIFO Method:

Under LIFO, the most recent purchases are sold first, and the remaining inventory consists of the oldest costs.

Steps:

1. Determine Ending Inventory Composition:

   • The 150 units remaining are taken from the earliest purchases (since the most recent purchases are sold first):
     • First, take 100 units from the 1/1/16 balance (oldest cost: $5/unit).
     • Then take 50 units from the 1/15/16 purchase (next oldest cost: $5.30/unit).

2. Calculate the Value of Ending Inventory:

   • 100 units @ $5.00 = $500
   • 50 units @ $5.30 = $265
   • Total = $500 + $265 = $765

Ending Inventory Value = $765

It seems the answer options provided in the question do not match the calculated value. Could you confirm the question details or ask further clarifications? Let me know if you'd like further verification or adjustments!

Would you like more details or have any questions?
Here are some related questions to explore:

1. How would the answer change if FIFO (First-In, First-Out) was used instead of LIFO?
2. What is the cost of goods sold (COGS) for January under LIFO?
3. How is the periodic inventory system different from the perpetual system?
4. Why might a company choose LIFO over FIFO for inventory accounting?
5. Can the inventory valuation differ under inflationary periods when using LIFO?

Tip: LIFO assumes that the most recent purchases are sold first, which often results in lower net income and taxes in periods of rising prices.