A Company Sells Garden Hoses and Uses the Perpetual Inventory

question 54

Multiple Choice

A company sells garden hoses and uses the perpetual inventory system to account for its merchandise.The beginning balance of the inventory and its transactions during September were as follows: September 1: Beginning balance of 18 units at $13 each
September 12: Purchased 30 units at $14 each
September 19: Sold 24 units at $30 selling price each
September 20: Purchased 24 units at $17 each
September 27: Sold 27 units at $30 selling price each
If the ending inventory is reported at $276,what inventory method was used?

• A)LIFO method.
• B)FIFO method.
• C)Weighted average method.
• D)Specific identification method.
• E)Retail inventory methoD.

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Definitions:

Deliberate And Coordinated Effort

A strategic and organized attempt to accomplish a specific goal.

Mass Production

is the manufacturing of large quantities of standardized products, often utilizing assembly lines or automated technology, to achieve economies of scale.

Mass Consumption

The large-scale purchasing and use of goods and services by the population.

Fordist Period

An industrial production model based on mass production and standardized products, named after Henry Ford, characterized by large-scale factory production and high wages.