Math  /  Data & Statistics

QuestionThe following lots of Commodity Z\mathbf{Z} were available for sale during the year.
Beginning inventory First purchase Second purchase Third purchase
10 units at \$30 25 units at \$32 30 units at \$34 10 units at \$35
The firm uses the periodic inventory system, and there are 20 units of the commodity on hand at the end of the year. What is the ending inventory balance of Commodity Z using LIFO? a. $620\$ 620 b. $659\$ 659 c. $655\$ 655 d. $690\$ 690

Studdy Solution
Calculate the ending inventory balance:
(10 units×$30)+(10 units×$32)=$300+$320=$620 (10 \text{ units} \times \$30) + (10 \text{ units} \times \$32) = \$300 + \$320 = \$620
The ending inventory balance of Commodity Z using LIFO is:
$620 \boxed{\$620}

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