Wednesday, July 13, 2011

Quick accounting question?

In its first month of operations, Quirk Company made three purchases of merchandise in the following sequence: (1) 442 units at $9, (2) 589 units at $10, and (3) 295 units at $12. Assuming there are 530 units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Quirk uses a periodic inventory system.

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