Question
The annual inventory of Big Wheels Inc. shows the following information for 20 inch tires. DATE QUANTITY COST TOTAL January 11 Beginning Inventory 50 $
The annual inventory of Big Wheels Inc. shows the following information for 20 inch tires.
| DATE | QUANTITY | COST | TOTAL | |
|---|---|---|---|---|
| January 11 | Beginning Inventory | 50 | $ 6.50 | $ 325 |
| March 20 | Purchase | 10 | 20.50 | 205 |
| July 11 | Purchase | 24 | 26.50 | 636 |
| September 11 | Purchase | 30 | 22.50 | 675 |
| November 13 | Purchase | 40 | 22.50 | 900 |
| Total available for sale | 154 | $2,741 |
If 38 tires were on hand on December 31, what is the value of the ending inventory using the LIFO method of inventory pricing?
Step by Step Solution
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Step: 1
To calculate the ending inventory using the LIFO method we assume that the last items purchased are ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
