Using the Following Information Calculate the Ending Inventory Balance and the Cost

question 12

Essay

Using the following information calculate the ending inventory balance and the cost of goods sold expense that would be reported at the end of the year if the following inventory valuation methods are used:
a.Average cost
b.FIFO
c.LIFO
$$\begin{array} { l r c } & \text { Units } & \text { Purchase Price } \\\text { Beginning inventory } & 8 & \$ 8 \\\text { Purchase \#1 } & 15 & \$ 9 \\\text { Purchase \#2 } & 24 & \$ 11 \\\text { Purchase \#3 } & 12 & \$ 13 \\\text { Sales } & 40 &\end{array}$$

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the market.

Strike Price

The fixed price at which the holder of an options contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Transactions Exposure

Short-run financial risk arising from the need to buy or sell at uncertain prices or rates in the near future.

Financial Risk

The possibility of losing money on an investment or business venture; it can arise from various sources like market volatility, credit risk, or operational failures.