Use This Information to Answer the Following Question A Periodic Inventory System Is Used

question 64

Multiple Choice

Use this information to answer the following question. $\begin{array}{rlrl}\text { Feb. }&1 & \text { Inventory } & 200 \text { units @ } \$ 6.00 \\&6 & \text { Purchase } & 300 \text { units @ } \$ 6.60 \\&13 & \text { Purchase } & 100 \text { units @ } \$ 7.20 \\&20 & \text { Purchase } & 200 \text { units @ } \$ 7.80 \\&25 & \text { Purchase } & 40 \text { units @ } \$ 8.40 \\&& \text { Total sales } & 620 \text { units }\end{array}$

A periodic inventory system is used.
Using LIFO,the cost assigned to ending inventory is

• A) $1,740.
• B) $4,056.
• C) $1,332.
• D) $4,464.

---

Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, essentially the net assets owned by the proprietors.

Liability

Financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits including money, goods, or services.

Course Of Business

The usual activities and practices of a company or individual in their day-to-day operations.

Liabilities

Financial obligations or debts a company owes to others, payable in money, goods, or services.