A Small-Appliance Merchant Using the LIFO Method of Valuing Inventory

question 63

Short Answer

A small-appliance merchant using the LIFO method of valuing inventory has 60 toasters remaining in inventory. The merchant purchased toasters over a three-month period as follows: 30 purchased at $7.80 on April 1, 50 purchased at $7.70 on May 1, and 20 purchased at $7.80 on June 1. Compute the value of the ending inventory of toasters at LIFO cost.​

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Definitions:

Long Run

In economics, a period during which all factors of production and costs are variable, allowing for full industry adjustment to change.

Lowest Price

The minimum price at which a product or service is offered in the market.

Short Run

A period in economic theory during which at least one input is fixed while others are variable.

Short Run

A period in economics during which the quantities of some inputs, typically capital, cannot be changed, affecting how firms adjust production levels.