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Question 1: Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2012 are as follows:
Units Per unit price Total
Balance, 1/1/12 200 $5.00 $1,000
Purchase, 1/15/12 100 5.30 530
Purchase, 1/28/12 100 5.50 550
Question 2: An end of the month (1/31/12) inventory showed that 140 units were on hand. If the company uses LIFO, what is the value of the ending inventory?
a. $700
b. $728
c. $742
d. $762
Please explain how to get the answer.
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