Use This Inventory Information for the Month of March to Answer

question 35

Multiple Choice

Use this inventory information for the month of March to answer the following questions. $\begin{array}{llll}\text { Mar. } & 1 & \text { Beginning inventory } & 20 \text { units @ } \$ 76 \\& 7 & \text { Purchase } & 70 \text { units @ } \$ 80\\&18 & \text { Sale } & 25 \text { units } \\&22 & \text { Purchase } & 10 \text { units @ } \$ 88 \\&29 & \text { Sale } & 40 \text { units } \end{array}$
Assuming that a perpetual inventory system is used,what is ending inventory on a LIFO basis?

• A) More information is needed.
• B) $5,120
• C) $2,720
• D) $2,880

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Definitions:

Product A

Not a real key term.

Indirect Labor

Wages paid to employees who are not directly involved in producing goods or providing services, such as maintenance and supervisory staff.

Activity Pools

In cost accounting, groups of tasks that have a similar cost driver in activity-based costing, helping allocate overhead costs more accurately.

Activity Rates

Metrics used in activity-based costing to allocate costs to products or services, based on activities that drive costs instead of traditional cost drivers like direct labor hours.