Three Identical Units of Merchandise Were Purchased During March, as Shown

question 108

Multiple Choice

Three identical units of merchandise were purchased during March, as shown: ​ ​
Assume that one unit is sold on March 23 for $1,125. What is the ending inventory on March 31 using LIFO?

• A) $245
• B) $295
• C) $1,670
• D) $1,720

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Definitions:

Revenue Accounts

Accounts that track the income earned by a company from its normal business operations or other activities.

Salaries and Wages Payable

Obligations due to employees for completed work that hasn't been compensated yet.

Payroll

The total amount of wages and salaries paid by a business to its employees for a set period of time.

Interest Payable

The amount of interest expense that has been incurred and is owed but has not yet been paid as of the balance sheet date.