Asked by Jazlyn McGinnis on Jun 25, 2024
Verified
Culver Clocks, Inc. uses the LIFO method of valuing inventory. Over the past year, it purchased clocks as follows: January 1: 100 at $38.00; March 1: 250 at $36.00; July 1: 175 at $39.00; October 1: 400 at $38.50; December 1: 300 at $39.50. At year-end on December 31, Culver Clocks, Inc. had a year-end inventory of 300 clocks. Compute the December 31, inventory value.
LIFO Method
An inventory valuation method where the last items added to inventory are the first ones to be used or sold.
Inventory Value
The total cost or market value of all the goods and materials held by a company for the purpose of resale.
Year-End Inventory
The total value of a company's merchandise, goods, and materials on hand at the end of a fiscal year, used to calculate cost of goods sold and profitability.
- Understand and apply inventory calculation methods including LIFO, FIFO, and average cost method.
- Determine the value of the ending inventory using various inventory valuation methods.
Verified Answer
Learning Objectives
- Understand and apply inventory calculation methods including LIFO, FIFO, and average cost method.
- Determine the value of the ending inventory using various inventory valuation methods.
Related questions
Home and Hearth, Which Uses the FIFO Method of Valuing ...
A Small-Appliance Merchant Using the FIFO Method of Valuing Inventory ...
Toddlers' Toyland Using the Average Cost Method of Valuing Inventory ...
Special Sports Store, Which Uses the FIFO Method of Valuing ...
Home and Hearth, Which Uses the LIFO Method of Valuing ...