Boyne Inc Inventory Calculation Using LIFO Retail Method

Boyne Inc Inventory Calculation Using LIFO Retail Method

Boyne Inc had beginning inventory of 12000 LIFO retail method.

A) Units in inventory: 12000

B) Ending inventory: 12000

C) Cost of goods sold: 12000

D) LIFO reserve: 12000

Final answer:

The subject of this question is Business and the grade level is High School. The LIFO retail method is used to determine the cost of inventory and cost of goods sold.

Explanation:

The subject of this question is Business and the grade level is High School.

The given information relates to the LIFO (Last In First Out) retail method, which is used to determine the cost of inventory and cost of goods sold.

In this case, the beginning inventory of 12,000 units is mentioned and it is assumed that all these units were sold during the period, resulting in an ending inventory of 0. Hence, the correct answer is:

  1. Units in inventory: 0
  2. Ending inventory: 0
  3. Cost of goods sold: 12,000
  4. LIFO reserve: 0
What is the significance of using the LIFO retail method in inventory calculations? The LIFO retail method helps businesses determine the cost of inventory and cost of goods sold by assuming that the most recently acquired inventory items are the first to be sold. This method can provide a more accurate reflection of the current costs associated with inventory and the revenue generated by sales.
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