The Following Units of an Inventory Item Were Available for Sale

question 111

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:

Variable Overhead

Costs that vary with production volume, such as utilities or materials, as opposed to fixed overhead costs.

Direct Materials

Raw materials that can be directly attributed to the production process of specific goods or services.

Direct Labor-Hours

A measure of the work done by production workers, calculated in hours.

Variable Overhead

Variable overhead refers to costs that change in proportion to the production activity or business operations levels, such as utilities or materials.