单选题
Use the following data related to MCE Corp's inventory to answer
Quarter
Units Purchased
Per Unit Cost
$ Purchases
Unit Sales

Ⅱ

Ⅲ

Ⅳ

80

30

40

20

17

15

1600

510

600

30

50

40

Assume no beginning inventory. Sales were $4500.
单选题 Calculate ending inventory using LIFO and FIFO: LIFO FIFO ①A. $ 450 $ 600 ②B. $ 510 $ 480 ③C. $ 600 $ 450
【正确答案】 C
【答案解析】LIFO: Ending inventory=units purchased-units sold=150-120=30 units, each of which is carried at the Quarter Ⅱ price of $ 20.30×20=$ 600. FIFO: 30 units×$15/unit=$ 450.
单选题 Calculate gross profit using LIFO and FIFO: LIFO FIFO ①A. $ 2260 $ 2110 ②B. $ 2390 $ 2240 ③C. $ 2110 $ 2260
【正确答案】 B
【答案解析】LIFO: Remember the COGS is BI + purchases-El or (0+2710-600)=2110.4500-2110= 2390. FIFO: 4500-(0+2710-450)=2240. Gross profit is higher under LIFO because costs have been falling.