Layman's Fine Jewelry Uses the LIFO Cost Flow Assumption and Has

Layman's Fine Jewelry uses the LIFO cost flow assumption and has a beginning inventory which includes four LIFO layers as follows:
$\begin{array}{lll} \text {Beginning inventory }& \text {\# of units }& \text { Unit cost}\\\text { Year 1 layer } & 150 & \$ 50.00 \\\text { Year 2 layer } & 100 & 60.00 \\\text { Year 3 layer } & 50 & 65.00 \\\text { Year 4 layer } & 200 & 75.00\end{array}$ During Year 5, Layman purchased 4,000 units and sold 4,250.Layman has to decide whether to purchase 250 additional units now at a price of $140 per unit or wait until February and pay $120 per unit due to an off-season discount promotion by the supplier.
What is the cash cost to Layman's Fine Jewelry under each alternative? Assume that the tax rate is a flat 30%.
Alternative A = Buy now
Alternative B = Buy in February

Correct Answer:

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Alternative A, Buy now:
Cash cost = 250 ...

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