Accounting Practice Problems Periodic Inventory - FIFO, LIFO, and Average Cost Practice Problems Solution: Hefty Company wants to know the effect of differen...

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Solution: Hefty Company wants to know the effect of different inventory methods on financial statements. Given below is information about beginning inventory and purchases for the current year. Sales during the year were 2,700 units at $5.00. If Hefty used the first-in, first-out method, ending inventory would be: a. $2,780 b. $3,960 c. $9,700 d. $10,880

Problem

Hefty Company wants to know the effect of different inventory methods on financial statements. Given below is information about beginning inventory and purchases for the current year.

Sales during the year were 2,700 units at $5.00. If Hefty used the first-in, first-out method, ending inventory would be:

a. $2,780

b. $3,960

c. $9,700

d. $10,880