Rectangle Ltd Manufactures Cardboard Boxes for a Variety of Purposes

question 55

Multiple Choice

Rectangle Ltd manufactures cardboard boxes for a variety of purposes. The following information relates to the production of the extra large packing boxes used by removalists for the period ended 30 June 2003.

The company uses a perpetual inventory system. The net realisable value per extra large cardboard box is $3.15 at the end of the period. What are the costs of goods sold and the value of ending inventory for Rectangle Ltd assuming the LIFO cost-flow assumption is used?

• A) Cost of sales: $3,460.40 Ending inventory: $380.00
• B) Cost of sales: $3,453.90 Ending inventory: $393.75
• C) Cost of sales: $3,459.41 Ending inventory: $380.99
• D) Cost of sales: $3,453.90 Ending inventory: $386.50
• E) None of the given answers.

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Definitions:

Distal Location

Refers to parts of the body or structures located farthest from the point of attachment or reference.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow.

False Ribs

The lower ribs (usually ribs 8-10) that are not directly attached to the sternum but are connected to the true ribs above them via cartilage.

Sternum

A long, flat bone located in the center of the chest, serving as a support for the rib cage and to protect vital organs such as the heart and lungs.