The Matisse Co. sells hula hoops the company purchases from their supplier, the Goop Co. At year end, the Matisse Co. sold a total of 1,000 hula hoops at a selling price of $10 per unit. The following information relates to inventory for the current year:

Beginning Inventory: 100 units @ $2.00 per unit Purchase 1: 300 units @ $2.20 per unit Purchase 2: 500 units @ $3.00 per unit Purchase 3: 500 units @ $4.00 per unit

Ending Inventory using LIFO, Last In Last Out, is $420.

Question 4 options:

a)

True.

b)

False.