Rectangle Ltd manufactures cardboard boxes for a variety of purposes.The following information relates to the production of the extra large packing boxes used by removalists for the period ended 30 June 2003. The company uses a perpetual inventory system.The net realisable value per extra large cardboard box is $3.15 at the end of the period.What are the costs of goods sold and the value of ending inventory for Rectangle Ltd assuming the LIFO cost-flow assumption is used?
A) Cost of sales: $3,460.40 Ending inventory: $380.00
B) Cost of sales: $3,453.90 Ending inventory: $393.75
C) Cost of sales: $3,459.41 Ending inventory: $380.99
D) Cost of sales: $3,453.90 Ending inventory: $386.50
E) None of the given answers.

Question

Rectangle Ltd manufactures cardboard boxes for a variety of purposes.The following information relates to the production of the extra large packing boxes used by removalists for the period ended 30 June 2003.  The company uses a perpetual inventory system.The net realisable value per extra large cardboard box is $3.15 at the end of the period.What are the costs of goods sold and the value of ending inventory for Rectangle Ltd assuming the LIFO cost-flow assumption is used?
A) Cost of sales: $3,460.40 Ending inventory: $380.00 
B) Cost of sales: $3,453.90 Ending inventory: $393.75 
C) Cost of sales: $3,459.41 Ending inventory: $380.99 
D) Cost of sales: $3,453.90 Ending inventory: $386.50 
E) None of the given answers.

Quizplus · Accepted Answer

The Answer of Rectangle Ltd manufactures cardboard boxes for a variety of purposes.The following information relates to the production of the extra large packing boxes used by removalists for the period ended 30 June 2003.  The company uses a perpetual inventory system.The net realisable value per extra large cardboard box is $3.15 at the end of the period.What are the costs of goods sold and the value of ending inventory for Rectangle Ltd assuming the LIFO cost-flow assumption is used?
A) Cost of sales: $3,460.40 Ending inventory: $380.00 
B) Cost of sales: $3,453.90 Ending inventory: $393.75 
C) Cost of sales: $3,459.41 Ending inventory: $380.99 
D) Cost of sales: $3,453.90 Ending inventory: $386.50 
E) None of the given answers.

Rectangle Ltd Manufactures Cardboard Boxes for a Variety of Purposes