Rectangle Ltd Manufactures Cardboard Boxes for a Variety of Purposes

Multiple Choice

Rectangle Ltd manufactures cardboard boxes for a variety of purposes. The following information relates to the production of the extra large packing boxes used by removalists for the period ended 30 June 2003.

The company uses a perpetual inventory system. The net realisable value per extra large cardboard box is $3.15 at the end of the period. What are the costs of goods sold and the value of ending inventory for Rectangle Ltd assuming the LIFO cost-flow assumption is used?

A) Cost of sales: $3,460.40 Ending inventory: $380.00
B) Cost of sales: $3,453.90 Ending inventory: $393.75
C) Cost of sales: $3,459.41 Ending inventory: $380.99
D) Cost of sales: $3,453.90 Ending inventory: $386.50
E) None of the given answers.