What is the amount of the inventory at the end of the year using the LIFO method? For XYZ company, the following lots of a particular commodity were available for sale during the yearunits at $60Beginning inventory 10First purchaseSecond purchase25units at $6530units at $68Third purchase15units at $75The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year.

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Description: What is the amount of the inventory at the end of the year using the LIFO method? For XYZ company, the following lots of a particular commodity were available for sale during the yearunits at $60Beginning inventory 10First purchaseSecond purchase25un

LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

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Business

Accounting

What is the amount of the inventory at the end of the year using the LIFO method?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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What is the amount of the inventory at the end of the year using the LIFO method?

For XYZ company, the following lots of a particular commodity were available for sale during the year
units at $60
Beginning inventory 10
First purchase
Second purchase
25
units at $65
30
units at $68
Third purchase
15
units at $75
The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year.

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