Rising inflation means that the money will have lower value, and this is good news for the borrowers, if they borrow one full salary's worth in 2010, they woould be able to re-pay with with only a fraction of the salary in 2015!
Profit of 10,750. 91,750 - 81000= 10,750/
Answer:
The answer is $762
Explanation:
Without doubt the 140 units on hand at month end would comprises of:
100 bought units on 1/28/13 for $5.50 each $550
40 units purchased on 1/15/13 $5.30 each $212
Total value of closing inventory $762
The value of closing inventory at the end of the month using FIFO method of valuing inventory is $762
FIFO First In First Out method assumes that the first sets of stock purchased are sold first which is in sharp contrast with LIFO Last In First Out where the last sets of inventory are assumed to be sold first.
However, the LIFO method tends to overvalue inventory in a period of rising inflation
