On January 1, 2020, Widget Company had 1,600 units of Inventory,
which were reported on their Balance Sheet at $ 6.00 per
unit.
During 2020, Widget had the following transactions:
March 1, 2020: Sold 1,000 units of Inventory @ $ 15 per unit
May 1, 2020:Purchased 900 units of Inventory @ $ 7 per unit
September 1, 2020: Sold 1,200 units of Inventory @ 16 per
unit
December 31, 2020: Purchased 700 units of Inventory @ $ 8 per
unit.
If Widge Company uses a Periodic LIFO Inventory System, and closes
their books once each year, what is the amount reported for
Inventory on their December 31, 2020 Balance Sheet?
A.$ 6,000
B.$ 7,400
C.$ 7,700
D.None of the above.
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