A Company Had the Following Purchases During the Current Year

question 44

Multiple Choice

A company had the following purchases during the current year: On December 31,there were 26 units remaining in ending inventory.Using the LIFO inventory valuation method,what is the cost of the ending inventory?

• A)$3,280.
• B)$3,200.
• C)$3,445.
• D)$3,540.
• E)$3,640.

---

Definitions:

Net Book Value

The total value of a company's assets minus its liabilities and intangible assets, indicating the net worth of the company's tangible assets.

Consolidated Net Income

The combined net income of a parent company and its subsidiaries, factoring in the effects of intercompany transactions.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recorded at cost and subsequently adjusted for the investor’s share of the net profits or losses of the investee.

Consolidation Worksheet Entries

Journal entries used in preparing consolidated financial statements, helping to adjust and eliminate internal transactions between parent and subsidiary entities.