The Following Is the Inventory for the Year for Cyber

question 101

Short Answer

The following is the inventory for the year for Cyber Energy: $$\begin{array} { l l l l } \text { Date } & \text { Units } & \text { Cost per unit } & \text { Total Cost } \\\hline \text { Beginning inventory, Jan. 1 } & 1,000 & \$ 4.00 & \$ 4,000 \\\text { Purchase, May } 6 & 1,250 & \$ 4.20 & \$ 5,250 \\\text { Purchase, July 18 } & 2,000 & \$ 4.75 & \$ 9,500 \\\text { Purchase, December 10 } & 750 & \$ 6.00 & \$ 4,500 \\\hline \text { Total Units Available } & 5,000 & & \$ 23,250\end{array}$$ Calculate the ending inventory of 1,500 units using both FIFO and LIFO methods.
A)Which method values the ending inventory higher, and
B)How much higher?

• A)Which method values the ending inventory higher, and
• B)How much higher?

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Definitions:

Mid-ocean Ridges

Mountainous formations under the sea, created by the shifting of earth's plates, which result in new ocean crust through volcanic processes.

Rising Mantle

The upward movement of the Earth's mantle, often leading to volcanic activity.

Divergent Boundary

A plate-tectonic boundary in which two plates move apart (diverge) relative to one another.

Convergent Boundary

A tectonic plate boundary where two plates move toward each other, often resulting in mountain building, earthquakes, or volcanic activity.