Asked by Christina Nestor on Jul 12, 2024
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Storme Shutters has the following inventory information. Nov. 1 Inventory 30 units @$8.008 Purchase 120 units @$8.3017 Purchase 60 units @$8.7025 Purchase 90 units @$8.80\begin{array} { r l r } \text { Nov. } 1 & \text { Inventory } & 30 \text { units } @\$ 8.00 \\8 & \text { Purchase } & 120 \text { units }@\$ 8.30 \\17 & \text { Purchase } & 60 \text { units } @ \$ 8.70 \\25 & \text { Purchase } & 90 \text { units }@\$ 8.80\end{array} Nov. 181725 Inventory Purchase Purchase Purchase 30 units @$8.00120 units @$8.3060 units @$8.7090 units @$8.80 A physical count of merchandise inventory on November 30 reveals that there are 80 units on hand. Assume a periodic inventory system is used. Ending inventory under LIFO is
A) $655.
B) $704.
C) $1756.
D) $1812.
Ending Inventory
Ending inventory is the total value of inventory still on hand at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting the goods sold.
LIFO
Last In, First Out (LIFO) is an inventory valuation method which assumes that the most recently produced items are the first to be sold.
Units
In accounting and finance, refers to a measure of quantity or volume of production or inventory.
- Ascertain the ending inventory balance and cost of goods sold employing divergent inventory costing approaches (FIFO, LIFO, average cost).
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Learning Objectives
- Ascertain the ending inventory balance and cost of goods sold employing divergent inventory costing approaches (FIFO, LIFO, average cost).
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