Beginning Inventory, Purchases, and Sales for an Inventory Item Are

question 49

Essay

Beginning inventory, purchases, and sales for an inventory item are as follows:
​ $\begin{array}{|l|l|}\hline \text { Beginning inventory } & 150 \text { units } @ \$ 755 \\\hline \text { Sale } & 120 \text { units } \\\hline \text { First purchase } & 400 \text { units } @ \$ 785 \\\hline \text { Sale } & 200 \text { units } \\\hline \text { Second purchase } & 300 \text { units }(\$ 805 \\\hline \text { Sale } & 290 \text { units } \\\hline\end{array}$ ​
The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year. What is the total cost of ending inventory according to LIFO?

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Definitions:

MSC

Marginal Social Cost; the total cost to society of producing an additional unit of a good, including both private costs and any external costs.

MEC Curve

A graphical representation showing the marginal external costs associated with the production of additional units of a good.

Malpractice Lawsuits

Legal claims made against professionals who fail to perform their duties with the competence expected, leading to harm.

Missed Deadlines

Failure to complete or submit work, documents, or applications within the specified timeframe, which can have legal or procedural implications.