In the First Month of Operations, Dieker Company Made Three

question 111

Essay

In the first month of operations, Dieker 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 250 units on hand, compute the cost of the ending inventory under (1) the FIFO method and (2) the LIFO method. Dieker uses a periodic inventory system.

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes, often leading to changes in beliefs or behaviors to reduce the dissonance.

Cognitive Dissonance

The unease in one's mind stemming from the coexistence of two or more opposing beliefs, ideas, or values within the same person.

Implicit Attitudes

Unconscious beliefs or feelings towards objects, people, or situations which can influence behavior and perceptions.

Attitude Accessibility

The ease with which an attitude can be retrieved from memory.