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fomenos
3 years ago
8

Lisa Company uses the periodic inventory system to account for inventories. Information related to Lisa Company's inventory at O

ctober 31 is given below:
October
1
Beginning inventory
390 units x $9.80 = $3,822
8
Purchase
790 units x $10.50 = 8,295
16
Purchase
590 units x $10.60 = 6,254
24
Purchase
195 units x $11.60 = 2,262
Total units and cost
1,965 units $20,633
Mathematics
1 answer:
scZoUnD [109]3 years ago
6 0

Answer:

The value of ending inventory will be items of latest purchase.

Step-by-step explanation:

Given that,

Lisa Company uses the periodic inventory system to account for inventories.

Information related to Lisa Company's inventory at October 31 is given,

Suppose, find the value of ending inventory using the FIFO cost assumption if 500 units remains on hand at october 31

We need to calculate the value of ending inventory

Using FIFO method

value\ of\ ending\ inventory =305\ units\times\$10.6+195\ units\times\$11.60

value\ of\ ending\ inventory = 3233+2262

value\ of\ ending\ inventory =\$5495

Hence, The value of ending inventory will be items of latest purchase.

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