The Periodic Inventory Records of Northstar Sales Indicate the Following

question 196

Essay

The periodic inventory records of Northstar Sales indicate the following for the month of April:
$\begin{array}{|r|c|c|}\hline \text { Apr. }1&\begin{array}{l}\text { Beginning merchandise } \\\text { inventory }\end{array} & 15 \text { units@\$32 each } \\\hline 7& \text { Purchase } & 7 \text { units @\$34 each } \\\hline 18& \text { Purchase } & 12 \text { units @ \$37 each } \\\hline 26& \text { Purchase } & 10 \text { units@\$40 each } \\\hline\end{array}$ As of April 30,Northstar counts 8 units of merchandise inventory on hand.
Compute ending merchandise inventory and cost of goods sold for Northstar using the LIFO inventory method.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit received from the purchase.

World Price

The international market price of a good or service, influenced by global supply and demand.

Free Trade

An economic policy that allows goods and services to be bought and sold across international borders with little to no government tariffs, quotas, subsidies, or prohibitions to inhibit exchange.

Consumer Surplus

The contrast between the potential payment by consumers for a product or service and their real expenditure.