Reference no: EM132459424

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.