For Case (B)above,what Is the Ending Balance (EB)

question 19

Multiple Choice

For Case (B) above,what is the Ending Balance (EB) ?

• A)$139,300.
• B)$136,260.
• C)$62,950.
• D)$56,730.

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Definitions:

LIFO

A method of inventory valuation where the last items added to inventory are the first ones to be used or sold, standing for Last In, First Out.

Weighted-Average

A calculation method that takes into account the varying degrees of importance of the numbers in a dataset.

Gross Profit Method

A method used to determine the value of the ending inventory using a predetermined gross profit rate. This method can be used to determine value of ending inventory if a loss from fire occurs.

Gross Profit

The financial metric calculated by subtracting cost of goods sold from total net sales, reflecting the efficiency of a company in managing its manufacturing costs.