A firm purchased 50 units of materials with a unit price of $1.30 on June 1.On June 15,the firm purchased 50 units with a unit price of $1.20.If the firm uses the LIFO method of inventory pricing,the total cost of 65 units issued on June 20 would be

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The firm purchased 50 units at $1.30 on June 1. On June 15, the firm purchased 50 units at $1.20. If the firm uses the LIFO method of inventory pricing, the total cost of 65 units issued on June 20 would be $79.50. This is because the firm would first use the 50 units purchased on June 15, which cost $1.20 each, and then the 15 units purchased on June 1, which cost $1.30 each.

A Firm Purchased 50 Units of Materials with a Unit