Starlight Company Has Inventory of 8 Units at a Cost

question 118

Multiple Choice

Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4.
- Using the LIFO perpetual inventory method, what is the value of inventory after the October 4 sale?

• A) $3,500.
• B) $3,485.
• C) $3,472.
• D) $3,445.
• E) $3,461.

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Definitions:

Data Collected

Information gathered for analysis or used to make decisions, often through observations, experiments, or measurements.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and direct labor costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, providing stability in a budget.