A Company Sells a Climbing Kit and Uses the Periodic

question 101

Multiple Choice

A company sells a climbing kit and uses the periodic inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows: If the ending inventory is reported at $357, what inventory method was used?

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

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Definitions:

Sampling Error

The difference between a population parameter and a sample statistic that results from selecting a sample.

Expected Value

The predicted average outcome of a random variable, computed as the weighted average of all possible values.

Stratified Random Sampling

A probability sampling method in which the population is first divided into strata and a simple random sample is then taken from each stratum.

Strata

Subsets of a population that are known to be homogeneous with respect to some characteristic, used in stratified sampling.