23. Oxford Company had a beginning inventory of 700 units that cost $9.00 each.

Question

23. Oxford Company had a beginning inventory of 700 units that cost $9.00 each. Purchases were madein June (3,600 units) and October (5,800 units) at costs of S9.50 and$9.80, respectively. IfOxford uses LIFO and a physical count revealed 1,100 units on hand, the company's balance sheet would disclose an ending inventory valuation of $10,100 $10,780 $86,560 87,240 a. 24. Jackson's inventory cost on the balance sheet was lower when using first-in, first-out than when using last- in, first-out. Assuming no beginning inventory, in which direction did the cost ofpurchasesmove during the vear? Up Down. Steady Cannot be determined. C. d.

Explanation / Answer

23.As.Oxford company is using LIFO method for inventory calculation then inventory will be valued at the rate which are first purchased or carry forwarded i.e beginning inventory

As closing inventory is 1100

Beginning inventory is 700 * 9 =6300

In June purchase remaining 400*9.5=3800

So total 10100 is the value of inventory

24.as cost of inventory is lower when using FIFO then in LIFO

This means latest purchase is costlier then the earlier purchases so this means cost of purchase is moving up wards

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