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Bat Company began the year with 4,000 units of inventory purchased for $4.00 per unit. On...

Bat Company began the year with 4,000 units of inventory purchased for $4.00 per unit. On March 1, Bat Company purchased another 10,000 units for $5.00 per unit. Bat purchased another 6,000 units for 7 $5.50 per unit on September 15. During the year Bat Company sold 15,000 units. Assuming Bat Company uses the LIFO inventory flow assumption, what was Bat Company's ending inventory?

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Answer #1

Value of Ending Inventory =

= 1,000 Unit * $ 5.00 + 4,000 Units * $ 4.00

= $ 5,000 + $ 16,000

= $ 21,000

Hence the correct answer is $ 21,000

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