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Korolek [52]
4 years ago
8

In its first month of operations, Splish Brothers Inc. made three purchases of merchandise in the following sequence: (1) 155 un

its at $7, (2) 410 units at $8, and (3) 100 units at $9. Assuming there are 310 units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Splish Brothers uses a periodic inventory system.
Business
1 answer:
FrozenT [24]4 years ago
8 0

Answer:

FIFO= $2,580

LIFO= $2,325

Explanation:

Giving the following information:

(1) 155 units at $7

(2) 410 units at $8

(3) 100 units at $9.

Assuming there are 310 units on hand.

FIFO (first-in, first-out) method:

Ending inventory= last units purchased

Inventory= 100*9 + 210*8= $2,580

LIFO (last-in, first-out)

Inventory= first units purchased

Inventory= 7*155 + 8*155= $2,325

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If x = y = 10

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3 0
3 years ago
A firm run by a rational entrepreneur would want to hold inventories.<br> True<br> False
RUDIKE [14]
True
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4 0
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Jane's candy shack was a quaint shop, in a small town, with high end items that never attracted many customers. its failure was
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3 years ago
Demarco and Tanya have received information about three separate mortgage offers. In two or three paragraphs, describe your reco
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5 0
3 years ago
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Gnesinka [82]

Answer:

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Today's share price = 66.67 / ( 1 + 12% )^2

Today's share price = $53.15

6 0
3 years ago
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