Given the Following Data, Calculate the Cost of Ending Inventory

question 6

Multiple Choice

Given the following data, calculate the cost of ending inventory using the FIFO costing method:
$\begin{array} { l l l } 1 / 1 & \text { Beginning inventory } & 45 \text { units at } \$ 10 \text { per unit } \\2 / 25 & \text { Purchases } & 40 \text { units at } \$ 12 \text { per unit } \\6 / 15 & \text { Purchases } & 30 \text { units at } \$ 13 \text { per unit } \\9 / 20 & \text { Purchases } & 25 \text { units at } \$ 14 \text { per unit } \\12 / 31 & \text { Ending inventory } & 40 \text { units }\end{array}$

• A) $560
• B) $480
• C) $545
• D) $400

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Definitions:

Confidence Interval

A stretch of values, resulting from sample analytics, projected to envelop the value of a hidden attribute in a population.

Population Proportion

The ratio of members within a subset to the total number of members in a population.

Stratified Random Sampling

A method of sampling that involves dividing a population into smaller groups, known as strata, that share similar characteristics, and then randomly selecting members from each stratum for study.

Chi-Square Distribution

A statistical distribution used in hypothesis testing that is applicable to variables measured on an interval scale, often used to analyze categorical data.