FIFO and LIFO Inventory Methods
During June, the Following Changes

question 62

Essay

FIFO and LIFO inventory methods
During June, the following changes in inventory item 27 took place:
$$\begin{array} { l l l l } \text { June } & 1 & \text { Balance } & 1,400 \text { units } @ \$ 24 \\&14 & \text { Purchased } & \text { g00 units } @ \$ 56 \\&24 & \text { Purchased } & 700 \text { units } @ \$ 50 \\&8 & \text { sold } & 400 \text { units } @ \$ 50 \\&10 & \text { sold } & 1,000 \text { units } @ \$ 40 \\&29 & \text { sold } & 500 \text { units } @ \$ 44\end{array}$$ Perpetual inventories are maintained.
Instructions
What is the cost of the ending inventory for item 27 under the following methods? (Show calculations.)
a) FIFO
b) LIFO

Articulate the utilitarian justification for income redistribution and its underlying assumptions.

Explore the maximin criterion and its implications for income distribution policies.

Interpret the effects of transitory vs. permanent income on household spending decisions.

Analyze various perspectives and proposals for income redistribution, including negative income taxes and the Earned Income Tax Credit.

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Definitions:

Environmental Performance Index (EPI)

A method of quantifying the environmental performance of a country's policies.

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the total value of all goods and services produced over a specific time period.

Combined Profit

The total profit earned by all firms in a particular market or industry, summed together.

Policies

Principles or rules established by organizations, governments, or groups to guide decisions and achieve rational outcomes.