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2) A company had the following purchases and sales during its first year of operations: Purchases 10 units at $120 20 units at $125 15 units at $130 January: February May September: 12 units at $135 November: 10 units at $140 Sales 6 units 5 units 9 units 8 units 13 units On December 31, there were 26 units remaining in ending inventory. Using the Periodic LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) A) $3,405. B) $3,270. $3,200. D) $3,364. E) $5,400.

2) A company had the following purchases and sales during its first year of operations: Purchases 10 units at $120 20 units at $125 15 units at $130 January: February May September: 12 units at $135 November: 10 units at $140 Sales 6 units 5 units 9 units 8 units 13 units On December 31, there were 26 units remaining in ending inventory. Using the Periodic LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) A) $3,405. B) $3,270. $3,200. D) $3,364. E) $5,400.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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2) A company had the following purchases and sales during its first year of operations: Purchases 10 units at $120 January: February: 20 units at $125 May: 15 units at $130 September: 12 units at $135 November: 10 units at $140 On December 31, there were 26 units remaining in ending inventory. Using the Periodic LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) A) $3,405. B) $3,270. $3,200. Sales 6 units 5 units units 9 8 units 13 units D) $3,364. E) $5,400.
Transcribed Image Text:2) A company had the following purchases and sales during its first year of operations: Purchases 10 units at $120 January: February: 20 units at $125 May: 15 units at $130 September: 12 units at $135 November: 10 units at $140 On December 31, there were 26 units remaining in ending inventory. Using the Periodic LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) A) $3,405. B) $3,270. $3,200. Sales 6 units 5 units units 9 8 units 13 units D) $3,364. E) $5,400.
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