The following information relates to inventory for Happy Eddie Incorporated: Transaction Quantity Cost 20 15 20 Date March 1 Beginning Inventory March 7 Purchase March 12 Purchase $2 $3 $4 A physical count revealed 30 units remained on hand at March 31. At what amount would Happy Eddie report its ending inventory using LIFO cost flow assumption? $170 $55 $110 $70

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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**Inventory Information for Happy Eddie Incorporated**

The following data relates to inventory management for Happy Eddie Incorporated:

| Date     | Transaction          | Quantity | Cost |
|----------|----------------------|----------|------|
| March 1  | Beginning Inventory  | 20       | $2   |
| March 7  | Purchase             | 15       | $3   |
| March 12 | Purchase             | 20       | $4   |

A physical count revealed that 30 units remained on hand as of March 31. 

**Question:** At what amount would Happy Eddie report its ending inventory using the LIFO (Last-In, First-Out) cost flow assumption?

**Options:**

- $170
- $55
- $110
- $70
Transcribed Image Text:**Inventory Information for Happy Eddie Incorporated** The following data relates to inventory management for Happy Eddie Incorporated: | Date | Transaction | Quantity | Cost | |----------|----------------------|----------|------| | March 1 | Beginning Inventory | 20 | $2 | | March 7 | Purchase | 15 | $3 | | March 12 | Purchase | 20 | $4 | A physical count revealed that 30 units remained on hand as of March 31. **Question:** At what amount would Happy Eddie report its ending inventory using the LIFO (Last-In, First-Out) cost flow assumption? **Options:** - $170 - $55 - $110 - $70
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