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Financial & Managerial Accounting
Found in: Page 260
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Refer to the information in QS 5-4 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. (Round per unit costs and inventory amounts to cents.)

Ending Inventory of business entity totals $450.

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Step by Step Solution

Definition of Beginning Inventory

The amount of unsold inventory in the previous year is carried forward to next year’s balance sheet as beginning inventory.

Assigned to Ending Inventory

Particular

Units

X

Per unit cost

=

Total cost

Beginning Inventory

150

X

$3

=

$450

Total

$450

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