Southeast Inc. has maintained a periodic inventory system and the LIF inventory method for 3 years. The earliest layers of LIFO inventory is from year 1. The company had beginning inventory at January 1, 2021 consisting of three layers: Quantity Price/Unit 2018: 150,000 units $10.00 2019: 80,000 units $12.00 2020 15,000 units $14.00

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Southeast Inc. has maintained a periodic inventory system and the LIFO
inventory method for 3 years. The earliest layers of LIFO inventory is
from year 1. The company had beginning inventory at January 1, 2021,
consisting of three layers:
Quantity
Price/Unit
2018:
150,000 units
$10.00
2019:
80,000 units
$12.00
2020
15,000 units
$14.00
Total
245,000 units
During 2021, an involuntary liquidation of inventory occurred. Ending inventory dropped to 210,000
units. This is an example of
Question 3 options:
A. Dollar Value LIFO
B. LIFO Liquidation
C. LIFO Reserve
D. Inventory Errors
Transcribed Image Text:Southeast Inc. has maintained a periodic inventory system and the LIFO inventory method for 3 years. The earliest layers of LIFO inventory is from year 1. The company had beginning inventory at January 1, 2021, consisting of three layers: Quantity Price/Unit 2018: 150,000 units $10.00 2019: 80,000 units $12.00 2020 15,000 units $14.00 Total 245,000 units During 2021, an involuntary liquidation of inventory occurred. Ending inventory dropped to 210,000 units. This is an example of Question 3 options: A. Dollar Value LIFO B. LIFO Liquidation C. LIFO Reserve D. Inventory Errors
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