The Following Units of an Inventory Item Were Available for Sale

question 27

Multiple Choice

The following units of an inventory item were available for sale during the year: The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The value of ending inventory using LIFO is:

• A) $1,250
• B) $1,350
• C) $1,375
• D) $1,150

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Definitions:

Direct Method

A cost allocation method that assigns service department costs directly to production departments without recognizing services provided between service departments.

Sales

Revenue generated from goods or services sold by a company.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without considering services provided between service departments.

Accounts Receivable

represents the money owed to a company by its customers for goods or services delivered but not yet paid for.