Beginning Inventory, Purchases and Sales Data for the Month Are

question 7

Essay

Beginning inventory, purchases and sales data for the month are as follows:
$\begin{array}{ll}10 \text { units at } \$ 42 \text { each } & \text { Beginning Inventory } \\15 \text { units at } \$ 44 \text { each } & \text { First Purchase } \\13 \text { units at } \$ 45 \text { each } & \text { Second Purchase } \\26 \text { units } & \text { Sales }\end{array}$ Determine the total cost of ending inventory according to (a) FIFO method and (b) LIFO method.

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Definitions:

Market Rate

The current price or interest rate of goods, services, or securities in the marketplace, determined by supply and demand forces.

Premium

A premium refers to the amount paid for buying insurance or the amount paid over the face value of bonds.

Contract Rate

The interest rate specified in a contractual agreement, such as in a loan or bond.

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.