Asked by Kiera Turner on Jul 09, 2024
Verified
What is the year-end inventory balance using the LIFO method? Use the information provided in the table to answer this question
A) $1,380
B) $1,375
C) $1,510
D) $1,250
LIFO Method
"Last In, First Out," an inventory costing method where the most recently produced or purchased items are recorded as sold first.
Year-End Inventory
The total value of a company's merchandise, raw materials, and finished and unfinished products which have not yet been sold, at the end of the fiscal year.
- Comprehend the foundational concepts of inventory valuation techniques, including FIFO, LIFO, average cost, and specific identification methods.
- Calculate the cost of goods sold employing different inventory techniques.
Verified Answer
BV
Bradon VisickJul 10, 2024
Final Answer :
D
Explanation :
Ending inventory using LIFO = 5 units from beginning inventory at $61 + 15 units at $63 from first purchase = $305 + $945 = $1,250
Ending inventory using LIFO = 5 units from beginning inventory at $61 + 15 units at $63 from first purchase = $305 + $945 = $1,250
Learning Objectives
- Comprehend the foundational concepts of inventory valuation techniques, including FIFO, LIFO, average cost, and specific identification methods.
- Calculate the cost of goods sold employing different inventory techniques.
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