FIFO and LIFO Periodic Inventory Methods

question 24

Essay

FIFO and LIFO periodic inventory methods.
The Rock Shop shows the following data related to an item of inventory:
Instructions

(a) What value should be assigned to the ending inventory using FIFO?
(b) What value should be assigned to cost of goods sold using LIFO?

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Definitions:

Price-Earnings Ratio

The Price-Earnings Ratio (P/E ratio) is a financial metric that measures a company's current share price relative to its per-share earnings, used to evaluate its value.

Earnings Per Share

A metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability.

Price Per Share

The current market price of a company's share, reflecting what investors are willing to pay for one share of the company's stock.

Current Ratio

An indicator of a business's capability to settle obligations due within a year, measuring its immediate financial solvency.