Given the Following: LIFO Method 250 Units Left in Inventory

question 8

Multiple Choice

Given the following: LIFO method 250 units left in inventory $$\begin{array} { | l | l | l | } \hline \text { Beginning inventory } & 200 \text { units at } \$ 6 & \$ 1,200 \\\hline \text { Purchases: } & & \\\hline \text { Apr 10 } & 400 \text { units at } \$ 7 & \$ 2,800 \\\hline \text { May 15 } & 250 \text { units at } \$ 7 & \$ 1,600 \\\hline \text { Tuly } 9 & 200 \text { units at } \$ 8 & \$ 1,600 \\\hline \text { Oct } 8 & 100 \text { units at } \$ 11 & \$ 1,100 \\\hline\end{array}$$ The cost of ending inventory is:

• A)$1,550
• B)$2,300
• C)$1,200
• D)$3,200
• E)None of these

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Definitions:

Formula

A concise way of expressing information symbolically, as in a mathematical or chemical formula.

Perfect Substitute

Goods or services that can be used in place of each other with no loss of utility by the consumer.

Indifference Curve

Represents combinations of two goods that provide the same level of satisfaction to a consumer.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, representing equal levels of utility or satisfaction.