Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 60 $ 52 $ 3,120 Apr. 7 Purchase 140 54 7,560 Jul. 16 Purchase 210 57 11,970 Oct. 6 Purchase 120 58 6,960 530 $ 29,610 For the entire year, the company sells 450 units of inventory for $70 each. 4. Determine which method will result in higher profitability when inventory costs are rising. Multiple Choice FIFO LIFO
Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 60 $ 52 $ 3,120 Apr. 7 Purchase 140 54 7,560 Jul. 16 Purchase 210 57 11,970 Oct. 6 Purchase 120 58 6,960 530 $ 29,610 For the entire year, the company sells 450 units of inventory for $70 each. 4. Determine which method will result in higher profitability when inventory costs are rising. Multiple Choice FIFO LIFO
Chapter10: Inventory
Section: Chapter Questions
Problem 4PA: Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering...
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During the year, TRC Corporation has the following inventory transactions.
Date | Transaction | Number of Units | Unit Cost | Total Cost | |||||||||
Jan. | 1 | Beginning inventory | 60 | $ | 52 | $ | 3,120 | ||||||
Apr. | 7 | Purchase | 140 | 54 | 7,560 | ||||||||
Jul. | 16 | Purchase | 210 | 57 | 11,970 | ||||||||
Oct. | 6 | Purchase | 120 | 58 | 6,960 | ||||||||
530 | $ | 29,610 | |||||||||||
For the entire year, the company sells 450 units of inventory for $70 each.
4. Determine which method will result in higher profitability when inventory costs are rising.
Multiple Choice
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FIFO
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