Use the Following Data to Calculate the Cost of Ending

question 32

Multiple Choice

Use the following data to calculate the cost of ending inventory using the LIFO method. $$\begin{array} { l l l } \text { September } 1 & \text { Beginning Inventory } & 15 \text { units at } \$ 20 \text { each } \\\text { September } 10 & \text { Purchase } & 20 \text { units at } \$ 25 \text { each } \\\text { September } 20 & \text { Purchase } & 25 \text { units at } \$ 28 \text { each } \\\text { September } 30 & \text { Ending Inventory } & 30 \text { units }\end{array}$$

• A) $825
• B) $750
• C) $675
• D) $600

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Definitions:

Pollution Rights

Permits or allowances that authorize the holder to emit a certain amount of pollution, often tradeable in a market to encourage reduction of pollution in cost-effective ways.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Subsidies

Financial assistance provided by governments to individuals, businesses, or other entities, aimed at promoting economic activities that are deemed beneficial for the public interest.

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the consequences, typically because another party bears the cost of those actions.