Given the Following Information, Determine the Cost of Ending Inventory

question 206

Multiple Choice

Given the following information, determine the cost of ending inventory at December 31 using the LIFO perpetual inventory method. December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.

• A)$51.75
• B)$83.22
• C)$41.30
• D)$94.00
• E)$50.75

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Definitions:

Earnings Per Share

A financial ratio that measures the amount of a company's profit allocated to each outstanding share of common stock.

Market Value

The financial value at which an asset could be bought or sold in the market.

Total Debt Ratio

A financial metric that divides the total liabilities of a company by its total assets.

Capital Structure

The mix of different forms of funds used by a company to finance its overall operations and growth, including debt, equity, and hybrid instruments.