Lansing Corporation Uses the Periodic Inventory System and Has Provided

question 167

Essay

Lansing Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers: During the year, 1,150 laptop computers were sold. What was ending inventory using the FIFO cost flow assumption?

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business over a certain period, such as rent, salaries, and loan payments.

High-low Method

A technique in managerial accounting used to estimate variable and fixed costs by analyzing the highest and lowest levels of activity.

Variable Cost Per Unit

The cost that varies with the level of output or activity, calculated on a per-unit basis.

Fixed Costs

Expenses that do not change with changes in the level of production or sales, such as rent, salaries, and insurance.