Asked by Serena Takhar on Jul 28, 2024
Verified
What is the year-end inventory balance using the FIFO method? Use the information provided in the table to answer this question
A) $1,380
B) $1,375
C) $1,510
D) $1,250
Year-End Inventory
Year-End Inventory is the total value of all inventory held by a company at the end of its fiscal year, crucial for financial reporting and tax calculations.
- Gain an understanding of the basic tenets pertaining to methods of inventory costing, such as FIFO, LIFO, average costing, and specific identification.
- Estimate the cost of goods sold by applying multiple inventory methods.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
C
Explanation :
Ending inventory = 10 units at $74 from third purchase + 10 units at $77 from second purchase = $740 + $770 = $1,510
Ending inventory = 10 units at $74 from third purchase + 10 units at $77 from second purchase = $740 + $770 = $1,510
Learning Objectives
- Gain an understanding of the basic tenets pertaining to methods of inventory costing, such as FIFO, LIFO, average costing, and specific identification.
- Estimate the cost of goods sold by applying multiple inventory methods.
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