The Following Lots of a Commodity P Were Available for Sale

question 191

Multiple Choice

The following lots of a Commodity P were available for sale during the year. Use this information to answer the questions that follow.
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The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year.
-What is the year-end inventory balance using the LIFO method? Use the information provided in the table to answer this question

• A) $1,380
• B) $1,375
• C) $1,510
• D) $1,250

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Definitions:

Finished Goods Account

An account used to track the value of products that are completed and ready for sale.

Factory Overhead Ledger

An accounting ledger that details the indirect costs associated with manufacturing, which may include utilities, depreciation, and salaries of non-direct labor.

Unit Costs

The cost associated with a single unit of product or service, including all costs incurred to produce, deliver, and sell the product.

Job Order Cost Systems

An accounting method that assigns costs to specific batches or job orders, tracking the direct materials, direct labor, and manufacturing overhead per job.