The Units of an Item Available for Sale During the Year

question 17

Short Answer

The units of an item available for sale during the year were as follows:? $\begin{array}{ccccc}\text { Jan. } 1 & \text { Inventory } &\quad~~~~~~~~~~~~&& 10 \text { units at } \$ 25 \\\text { Apr. } 4 & \text { Purchase } &&& 15 \text { units at } \$ 24 \\\text { May } 20 & \text { Purchase } &&& 20 \text { units at } \$ 28 \\\text { Oct } 30 & \text { Purchase } &&& 18 \text { units at } \$ 30 \\\end{array}$ There are 19 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost using LIFO.

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Definitions:

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to assess price changes in the cost of living.

Price Level

A measure of the average prices of goods and services in an economy at a specific time, influencing purchasing power and economic policy.

Nominal Rate

The interest rate as stated without adjusting for inflation, representing the face value of financial transactions.

Interest

The cost of borrowing money or the return on investment; it is typically expressed as a percentage of the principal amount.