Use the Following Information for

question 32

Multiple Choice

Use the following information for
Ely Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO.During the year, purchases were $600,000 and sales were $1,000,000.December 31 inventory at year-end prices was $126,500, and the price index was 110.
-What is Ely Company's gross profit?

• A)$415,000.
• B)$416,500.
• C)$426,500.
• D)$883,500.

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Definitions:

Mores

Social norms that are widely observed and have great moral significance within a particular society.

Convention

A formal meeting or assembly of people with a common interest, often for discussion or promoting ideas and projects.

Custom

Traditional and widely accepted ways of behaving or doing something that are specific to a particular society, place, or time.

Power Distance

A cultural dimension that describes the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.