Home and Hearth, Which Uses the FIFO Method of Valuing

question 17

Short Answer

Home and Hearth, which uses the FIFO method of valuing inventory, has 35 fire screens remaining in inventory. Home and Hearth purchased fire screens over a 12-month period as follows: 36 purchased at $140 on January 4, 18 purchased at $145 on April 2, 18 purchased at $150 on July 30, and 36 purchased at $148 on September 1. Compute the value of the ending inventory of fire screens at FIFO cost.​

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Definitions:

Interpret Relative Ages

The process of determining the chronological order of geological events or rock layers without necessarily determining their absolute age.

Crosscuts

Geological features that intersect other features, often used in the context of veins or faults cutting across different layers of rock.

Relative Ages

The determination of the age of one feature, rock, or artifact in relation to another without specifying its exact age in years.

Igneous Rock

Rock formed from the cooling and solidification of magma or lava.