Asked by Bryan Flores on Jun 04, 2024
Verified
Home and Hearth, which uses the LIFO method of valuing inventory, has 35 fire screens remaining in inventory. Home and Hearth purchased fire screens over a 12-month period as follows: 36 purchased at $140 on January 4, 18 purchased at $145 on April 2, 18 purchased at $150 on July 30, and 36 purchased at $148 on September 1. Compute the value of the ending inventory of fire screens at LIFO cost.
LIFO Method
An inventory valuation method that assumes the most recently produced items are sold first, with 'LIFO' standing for "last in, first out."
Ending Inventory
The total value of all unsold goods that a company has in its possession at the end of an accounting period.
Fire Screens
Protective barriers placed in front of fireplaces to prevent sparks from escaping into the room.
- Gain an understanding of, and apply, strategies for inventory calculation including the Last In, First Out (LIFO), First In, First Out (FIFO), and average cost techniques.
- Ascertain the final inventory worth through the application of diverse inventory valuation techniques.
Verified Answer
Learning Objectives
- Gain an understanding of, and apply, strategies for inventory calculation including the Last In, First Out (LIFO), First In, First Out (FIFO), and average cost techniques.
- Ascertain the final inventory worth through the application of diverse inventory valuation techniques.
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