A Company Just Starting Business Made the Following Four Inventory

question 83

Multiple Choice

A company just starting business made the following four inventory purchases in June: A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. The inventory method which results in the highest gross profit for June is

• A) the FIFO method.
• B) the LIFO method.
• C) the weighted average unit cost method.
• D) not determinable.

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