Thelen's Inventory Records Show the Following Data at January 31

question 78

Multiple Choice

Thelen's inventory records show the following data at January 31: At January 31,210 units are still on hand.What is the cost of the ending inventory at January 31 if Thelen uses the LIFO method?

• A)$1,680
• B)$1,900
• C)$2,210
• D)$3,000

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Definitions:

Perpetual Inventory Method

An inventory management method where stock levels are updated in real-time with each sale or purchase transaction.

Petty Cash Fund

Petty cash fund is a small amount of cash kept on hand for making immediate payments for minor and incidental expenses.

Perpetual Inventory System

An inventory management system where inventory levels are updated in real-time or on a continuous basis following each purchase or sale transaction.

General Journal

A primary accounting record used to record all types of transactions and events in chronological order before they are posted to specific accounts.