Use the following information for questions 100 and 101.
Niles Co. has the following data related to an item of inventory:
-The value assigned to ending inventory if Niles uses LIFO is
A) $580.
B) $552.
C) $546.
D) $584.

Question

Use the following information for questions 100 and 101.
Niles Co. has the following data related to an item of inventory: 
-The value assigned to ending inventory if Niles uses LIFO is
A) $580. 
B) $552. 
C) $546. 
D) $584.

Quizplus · Accepted Answer

Under the Last-In, First-Out (LIFO) method, the most recently purchased items are sold first, leaving the older inventory items to be accounted for in the ending inventory. Without specific inventory purchase and sales details, it's not possible to calculate the exact value. However, given the options, if B) $552 is correct, it would imply that the last items purchased (which are typically more expensive due to inflation or other factors) were sold first, leaving the cheaper, older items in the ending inventory, resulting in a lower ending inventory value compared to methods like FIFO (First-In, First-Out).

Use the Following Information for Questions 100 and 101