Farr Co Adopted the Dollar-Value LIFO Inventory Method on December 31

question 91

Multiple Choice

Farr Co. adopted the dollar-value LIFO inventory method on December 31, 2014. Farr's entire inventory constitutes a single pool. On December 31, 2014, the inventory was $640,000 under the dollar-value LIFO method. Inventory data for 2015 are as follows: Using dollar value LIFO, Farr's inventory at December 31, 2015 is

• A) $704,000.
• B) $816,000.
• C) $800,000.
• D) $880,000.

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Definitions:

Subsidiary Ledger

A detailed ledger that contains detailed financial information associated with specific accounts, which is summarized in the general ledger.

General Ledger

A comprehensive set of accounts that records all transactions of a company, categorized into assets, liabilities, equity, revenue, and expenses.

Sales Return

Goods returned by the customer to the seller for a refund or credit due to reasons like defects or dissatisfaction.

General Journal

A comprehensive ledger that records all the day-to-day financial transactions of a business.