Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

 Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):
 
56 units at $148 per unit
150 units at $157 per unit
186 units at $137 per unit
Sales for the year totaled 350 units, leaving 42 units on hand at the end of the year.

In comparing the ending inventory balances of FIFO and LIFO, the ending inventory value under FIFO less the ending inventory balance under LIFO results in a difference of:

Multiple Choice

$462.


$(462).


$0.


$53.

Answer

$(462).

Explanation
(42 last units × $137) less (42 first units × $148) = $(462).

 

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