Given the Following Information, What Would the Ending Inventory Value

question 98

Multiple Choice

Given the following information, what would the ending inventory value be on December 31 under the LIFO method in a periodic inventory system? $$\begin{array} { | l | l | } \hline \text { Dates } & \text { Units of Inventory } \\\hline \text { Opening Inventory } & 200 \text { units at } \$ 5.00 \\\hline \text { Purchases: } & \\\hline \text { April } 12 & 300 \text { units at } \$ 5.10 \\\hline \text { July 7 } & 400 \text { units at } \$ 5.25 \\\hline \text { Sales: }& \\\hline \text { August } 12 & 100 \text { units at } \$ 8.00 \\\hline \text { December } 15 & 500 \text { units at } \$ 8.20 \\\hline\end{array}$$

• A)$1,510
• B)$1,575
• C)$2,075
• D)$3,120

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Definitions:

Expense Account Balance

The total amount recorded as expenditures by a company within a specific period, awaiting reimbursement or allocation.

Income Summary

A temporary account used in accounting to transfer revenues and expenses, summarizing the net income or loss for a period before transferring the balance to retained earnings.

Owner's Capital

The amount of equity in a company that is directly attributable to the owner(s), representing their stake in the company’s assets after liabilities have been subtracted.

Revenue

Income derived from the core business activities of a company, specifically through selling products or services.