Dobler Company Uses a Periodic Inventory System An End of the Month (1/31/2017) Inventory Showed That 240

question 169

Multiple Choice

Dobler Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: $\begin{array}{llrr}&\text { Units }&\text { Per unit price }&\text { Total }\\\text { Balance, } 1 / 1 / 2017 & 300 & \$ 5.00 & \$ 1.500 \\\text { Purchase, } 1 / 15 / 2017 & 150 & 5.30 & 795 \\\text { Purchase, } 1 / 28 / 2017 & 150 & 5.50 & 825\end{array}$ An end of the month (1/31/2017) inventory showed that 240 units were on hand. If the company uses LIFO, what is the value of the ending inventory?

• A)$1,264
• B)$1,200
• C)$1,302
• D)$1,920

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Definitions:

Labor Inputs

The work effort provided by employees that is used in the production process of goods and services.

AFC

Average Fixed Cost, which is the fixed cost of production divided by the quantity of output produced, illustrating how fixed costs dilute over larger production volumes.

AVC

AVC stands for Average Variable Costs, referring to the total variable costs of production divided by the quantity of output produced, indicating how variable costs per unit change with output levels.

ATC

The cost per unit of output, calculated by dividing the total costs (both fixed and variable) by the total quantity produced; identical to Average Total Cost.