Asked by
Jenex Sengane
on Dec 05, 2024
Verified
Refer to Exhibit 8-3.Assuming Davilo uses a perpetual LIFO cost flow assumption, ending inventory at April 30 would be
A) $ 880
B) $ 920
C) $1, 090
D) $1, 890
Perpetual LIFO
Perpetual LIFO, or Last-In, First-Out, is an inventory accounting method continuously updating inventory and costs of goods sold by assuming the last items purchased are the first to be sold.
Ending Inventory
The worth of products ready for purchase at the conclusion of a financial period.
Cost Flow Assumption
A method adopted by businesses to value inventory and determine the cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out).
- Estimate the costs linked to inventory by leveraging varied assumptions regarding inventory cost flow, namely FIFO, LIFO, and weighted average strategies.
Verified Answer
ML
Learning Objectives
- Estimate the costs linked to inventory by leveraging varied assumptions regarding inventory cost flow, namely FIFO, LIFO, and weighted average strategies.