### Inventory Analysis Using LIFO MethodThe following units of an inventory item were available for sale during the year:- **Beginning Inventory**: 12 units at $48 each- **First Purchase**: 18 units at $50 each- **Second Purchase**: 23 units at $56 each- **Third Purchase**: 16 units at $60 eachThe firm employs a periodic inventory system. Over the course of the year, 49 units of the item were sold.### Calculation Problem**Question**: What is the value of the ending inventory using the Last-In, First-Out (LIFO) method?#### Options- a. $1,264- b. $576- c. $1,552- d. $976### Method: LIFOIn a LIFO inventory system, the last items purchased are assumed to be the first sold. Therefore, the ending inventory comprises the oldest costs.The task is to determine which units remain in stock at year-end and calculate their total value.

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Description: ### Inventory Analysis Using LIFO MethodThe following units of an inventory item were available for sale during the year:- **Beginning Inventory**: 12 units at $48 each- **First Purchase**: 18 units at $50 each- **Second Purchase**: 23 units at $56

LIFO = Last In First Out Under the LIFO method, the latest purchases are sold first and the initial…

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The following units of an inventory item were available for sale during the year: Beginning inventory 12 units at $48 First purchase 18 units at $50 Second purchase 23 units at $56 Third purchase 16 units at $60 The firm uses the periodic inventory system. During the year, 49 units of the item were sold. The value of ending inventory using LIFO is a. $1,264 b. $576 OC. $1,552 Od. $976

The following units of an inventory item were available for sale during the year: Beginning inventory 12 units at $48 First purchase 18 units at $50 Second purchase 23 units at $56 Third purchase 16 units at $60 The firm uses the periodic inventory system. During the year, 49 units of the item were sold. The value of ending inventory using LIFO is a. $1,264 b. $576 OC. $1,552 Od. $976

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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