The Following Units of an Inventory Item Were Available for Sale

question 139

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 FIFO is:

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

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Definitions:

Fair Value

An estimate of a security's worth on an open market, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

Adjusting Entry

These are journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Bonds Pay Interest

A statement indicating that bond issuers periodically make interest payments to bondholders.

Semiannually

Refers to an event or action that occurs twice a year.