Given the Following Inventory Activity, What Is Ending Inventory Using

question 47

Multiple Choice

Given the following inventory activity, what is ending inventory using the perpetual LIFO costing method? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

• A)195 units @ $3.32
• B)120 units @ $3.00 and 45 units @ $2.50 and 30 units @ $6.00
• C)165 units @ $2.83 and 30 units @ $6.00
• D)105 units @ $3.00 and 60 units @ $2.50 and 30 units @ $6.00

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Definitions:

Annuity

A finite series of equal payments at equal intervals of time. In an ordinary annuity the payments occur at the ends of the time periods. In an annuity due, they occur at the beginnings.

Discounted Value

The present value of a future amount of money or a series of cash flows, adjusted for time value of money.

Annuity

A financial product that pays out a fixed stream of payments to an individual, usually used as an income stream in retirement.

Present Value

The immediate value of a prospective amount of money or cash flow series, determined by a specific rate of return.