Fulbright Corp

question 138

Multiple Choice

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition) : 40 units at $100
70 units at $80
170 units at $60
Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.
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Ending inventory using the LIFO method is:

• A) $650.
• B) $1,000.
• C) $707.
• D) $600.

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Definitions:

Consolidated Balance Sheet

A balance sheet that aggregates the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries, presenting the financial position of the entire group.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, essentially representing the owners' claim on the company.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.

Fair Market Value

The price at which an asset would change hands in a transaction between a willing buyer and seller, both having reasonable knowledge of all relevant facts.