Asked by Mallory Sheets on May 22, 2024
Verified
A small-appliance merchant using the LIFO method of valuing inventory has 60 toasters remaining in inventory. The merchant purchased toasters over a three-month period as follows: 30 purchased at $7.80 on April 1, 50 purchased at $7.70 on May 1, and 20 purchased at $7.80 on June 1. Compute the value of the ending inventory of toasters at LIFO cost.
LIFO Method
An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting period; LIFO stands for Last-In, First-Out.
Ending Inventory
The value of goods available for sale at the end of an accounting period, after accounting for sales and additions during the period.
Toasters
Kitchen appliances designed for toasting bread.
- Attain proficiency in and apply principles of inventory management, including the techniques of LIFO, FIFO, and average cost computation.
- Deduce the final value of inventory employing assorted methods for evaluating inventory.
Verified Answer
Learning Objectives
- Attain proficiency in and apply principles of inventory management, including the techniques of LIFO, FIFO, and average cost computation.
- Deduce the final value of inventory employing assorted methods for evaluating inventory.
Related questions
Toddlers' Toyland Using the Average Cost Method of Valuing Inventory ...
A Small-Appliance Merchant Using the FIFO Method of Valuing Inventory ...
Special Sports Store, Which Uses the Average Cost Method of ...
Special Sports Store, Which Uses the FIFO Method of Valuing ...
Home and Hearth, Which Uses the FIFO Method of Valuing ...