A Corporation Uses a LIFO Perpetual Inventory System

question 112

Multiple Choice

A corporation uses a LIFO perpetual inventory system. August 2, 25 units were purchased at $12 per unit.
August 5, 10 units were purchased at $13 per unit.
August 15, 12 units were sold at $25 per unit.
August 18, 15 units were purchased at $14 per unit.
What was the amount of the ending inventory for the month of August?

• A)$496.00
• B)$486.00
• C)$492.57
• D)$300.00
• E)$510.00

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Definitions:

Peak-period

A time frame characterized by the highest level of activity, operation, or demand in a given process, industry, or market.

Machine-hours

The total operational time of machines within a production process, utilized for cost allocation and efficiency analysis.

Maintenance Department

The division within an organization responsible for the upkeep, repair, and servicing of equipment and facilities.

Fixed Costs

Outgoings that remain invariable, regardless of operational output or sales numbers, encompassing costs like rent, employee pay, and safeguarding premiums.