The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $55 First purchase 25 units at $65 Second purchase 30 units at $68 Third purchase 15 units at $70 The firm uses the periodic system and there are 25 units of the commodiyt on hand at the end of the year. 55. What is the amount of the inventory at the end of the year using the LIFO method? a. $1,645 b. $1,525 c. $1,730 d. $3,740 56. During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is a. FIFO b. LIFO c. average cost d. weighted average 57. If a compay mistakenly counts less items during a physical inventory than actually exist, how will the error affect the cost of merchandise sold? a. Understanted b. Overstated c. No change. d. Only inventory is affected. 58. A company will most likely use an estimated method of determining inventory when a. the company decides not to do a physical inventroy. b. a natural disaster has destroyed most of their inventory. c. the company has not kept up with their inventory records. d. the company is preparing annual financial statements. 59. Stevens Company started the year with an inventory cost of $145,000. During the month of January they purchased inventory that cost of $53,000. January sales totaled $140,000. Estimated gross profit is 35%. The estimated ending inventory as of January 31 is a. $58,000 b. $91,000 c. $107,000 d. $69,300