A Hardware Merchant Using the FIFO Method of Valuing Inventory

question 58

Short Answer

A hardware merchant using the FIFO method of valuing inventory has 300 hammers remaining in inventory. The merchant purchased hammers over a three month-period as follows: 120 purchased at $3.50 on April 1, 150 purchased at $3.62 on May 1, and 150 purchased at $3.72 on June 1. Compute the value of the ending inventory of hammers at FIFO cost.​

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Definitions:

Derogation of Target Bias

A cognitive bias where an individual derogates a target to justify maltreatment or a negative attitude toward them.

Morality Bias

The tendency to make judgments or assumptions based on moral standards, which can lead to biased decision-making.

Social Discounting Bias

The tendency to devalue benefits or harms that happen to people who are socially or spatially distant from oneself.

Social Discounting Bias

The tendency to devalue benefits or resources when they are to be shared with larger numbers of people.