A company just starting a business made the following four inventory purchases in May: May 1 -...
Question:
A company just starting a business made the following four inventory purchases in May: May 1 - 130 units totaling $390; May 10 - 200 units totaling $650; May 15 -200 units totaling $700; and May 28 - 170 units totaling $680.
A physical count of inventory on May 31 reveals that there are 200 units on hand.
Using the LIFO inventory method, the amount allocated to Ending Inventory is __________.
Closing Stock:
Raw materials, work-in-process, and finished goods are all forms of ending inventory. They should be reported on the balance sheet under current assets. The closing stock of a given year is carried forward as the opening stock of the following year.
Answer and Explanation: 1
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View this answerUsing the LIFO inventory method, the amount allocated to Ending Inventory is $617.50.
There are 200 units in the ending inventory. As per the LIFO...
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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
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Chapter 6 / Lesson 11
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Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.
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