Singleton Company's perpetual inventory records included the following information: Date Number of units and unit costTotal costJanuary 1Beginning inventory260 units @ $10$2,600? March 4Purchase210 units @ $14$2,940? September 28Purchase470 units @ $12$5,640? ??????Number of units sold during the year: 700If Singleton uses the LIFO cost flow method, its ending inventory would be $2,400.
Answer the following statement true (T) or false (F)
True
The last-in, first-out (LIFO) cost flow method requires that the cost of the items purchased last be charged to cost of goods sold.
Units in ending inventory = Units available for sale of (260 + 210 + 470) ? Units sold of 700 = 240
Ending inventory = 240 units × January 1 unit cost of $10 = $2,400
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