Radical Radials Company Has the Following Inventory Data A Physical Count of Merchandise Inventory on July 30 Reveals

question 139

Multiple Choice

Radical Radials Company has the following inventory data: $$\begin{array} { r l r r } \text { July } 1 & \text { Beginning inventory } & 30 \text { units at } \$ 19 & \$ 570 \\7 & \text { Purchases } & 105 \text { units at } \$ 20 & 2,100 \\22 & \text { Purchases } & 15 \text { units at } \$ 22 & { 330 }\\&&& { \$ 3,000 }\end{array}$$ A physical count of merchandise inventory on July 30 reveals that there are 48 units on hand. Using the LIFO inventory method, the amount allocated to ending inventory for July is

• A)$930
• B)$912
• C)$960
• D)$1,056.

---

Definitions:

Depreciate

The process of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Cash Flow From Assets

The total amount of money being transferred into and out of a business, especially affecting the operational activities involving its assets.

Operating Cash Flow

Cash generated from a company's normal business operations.

Net Capital Spending

The total expenditure on fixed assets less any sales of fixed assets. It indicates how much a company is investing in its current and future operations.