In the First Month of Operations, Santos Company Made Three

question 75

Essay

In the first month of operations, Santos Company made three purchases of merchandise in the following sequence: (1) 200 units at $6, (2) 300 units at $7, and (3) 400 units at $8. Assuming there are 300 units on hand, compute the cost of the ending inventory under (1) the FIFO method and (2) the LIFO method. Santos uses a periodic inventory system.

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Definitions:

United States

A country located in North America, known for its diverse culture, strong economy, and influential role in global affairs.

Aggravated Assaults

Attacks or attempts to attack with the intent to cause severe bodily injury, often involving the use of a weapon or by means likely to produce death or grave harm.

Heated Arguments

Intense and emotional disputes or disagreements that can escalate due to strong opinions or heightened tensions.

Guns

Firearms designed to discharge projectiles (bullets or shells) at high velocities, used for hunting, sport, or combat.