Use the Information Below to Answer the Following Questions:
a

question 40

Multiple Choice

Use the information below to answer the following questions:
A company purchases and sells Roofoo. It began last year with 5 units of Roofoo on hand at a cost of $10 each, and during the year its purchases and sales were as follows:
$$\begin{array} { l c c c c } \text { Date } & \begin{array} { c } \text { Units } \\\text { purchased }\end{array} & \text { Units sold } & \begin{array} { c } \text { Units on } \\\text { hand }\end{array} & \begin{array} { c } \text { Purchase } \\\text { price }\end{array} \\\text { July 1 } & & & 5 & \$ 10 \\\text { Sept 10 } & 5 & & 10 & \$ 12 \\\text { Dec 20 } & & 6 & 4 & \\\text { Mar 3 } & 4 & & 8 & \$ 15 \\\text { June 10 } & &5 & 3 &\end{array}$$
-What was the value of ending inventory of Roofoo,using the LIFO assumption in a periodic inventory system?

• A) $30
• B) $36.43
• C) $45
• D) $109.26.

---

Definitions:

Interest Revenue

Income earned from deposit accounts or investments through the interest paid by the borrower to the lender.

Incremental Borrowing Rate

The interest rate a lessee would have to pay if borrowing over a similar term, and with similar security, the funds necessary to lease or purchase an asset.

Lessor's Implicit Rate

The interest rate used in lease agreements, assumed by the lessor, that when applied to the lease payments, equals the fair value of the leased asset.