Asked by Isiwat Taiwo on Jul 30, 2024
Verified
The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method?
A) $655
B) $620
C) $690
D) $659
Periodic System
An accounting system where inventory is updated at specific periods rather than continuously, typically used for calculating cost of goods sold at the end of an accounting period.
Ending Inventory
The aggregate value of products available for purchase at the conclusion of a financial period.
LIFO Method
Last In, First Out method; an inventory valuation technique where the latest items added to inventory are the first ones removed during sales.
- Ascertain inventory levels through the utilization of distinct valuation approaches, including LIFO, FIFO, and average cost, in both the perpetual and periodic inventory environments.
Verified Answer
Learning Objectives
- Ascertain inventory levels through the utilization of distinct valuation approaches, including LIFO, FIFO, and average cost, in both the perpetual and periodic inventory environments.
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