Calculating Inventory Value Under FIFO Method
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Holliday Company's inventory records show the following data:
Units
Unit Cost
Inventory, January 1
5,000
$9.00
Purchases: June 18
4,500
8.00
November 8
3,000
7.00
A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $12 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at:
$14,500.
$14,000.
$18,000.
$15,000.
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Solution Summary
This solution provides calculations for Holliday Company's inventory records.
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