Bevin Inc. uses the FIFO method for valuing inventory. Its inventory purchases in 2018 totaled ($ 5,000,000)

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Bevin Inc. uses the FIFO method for valuing inventory. Its inventory purchases in 2018 totaled $\$ 5,000,000$ and its ending inventory on December 31,2018 is $\$ 2,000,000$

(before the Code Sec. 263A cost allocation). It incurred the following costs in 2018:

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Total labor costs excluding amounts in the mixed service costs are $\$ 4,000,000$. What is the value of Bevin Inc.'s ending inventory?

a. $\$ 2,470,000$

b. $\$ 2,191,300$

c. $\$ 2,008,250$

d. $\$ 2,000,000$

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CCH Federal Taxation 2019 Comprehensive Topics

ISBN: 9780808049081

2019 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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Question Posted: Feb 27, 2024 04:01 AM

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Bevin Inc. uses the FIFO method for valuing inventory. Its inventory purchases in 2018 totaled ($ 5,000,000)

Question:

Itern Storage Purchasing Handling Labor costs for the above items Mixed services Amount $190,000 200,000 80,000 150,000 220,000

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CCH Federal Taxation 2019 Comprehensive Topics

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