Echo Sound Company Just Began Business and Made the Following

question 146

Multiple Choice

Echo Sound Company just began business and made the following four inventory purchases in June: $\begin{array}{lrlr}\text { June } & 1 & 150 \text { units } & \$ 1,040 \\\text { June } & 10 & 200 \text { units } &1,560 \\\text { June } & 15 & 200 \text { units } & 1,680\\\text { June } & 28 & 150 \text { units } & 1,320 \\& &&\$5,600\end{array}$ A physical count of merchandise inventory on June 30 reveals that there are 210 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 average cost method.
• D)not determinable.

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Definitions:

Random Variable

A random variable is a variable whose values are outcomes of a random phenomenon.

Sporting Goods Store

A retail establishment specializing in the sale of sports equipment, outdoor gear, and related merchandise.

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Footwear specifically designed to improve comfort and performance during running activities.

Binomial Probability Table

A table used to find the probability of obtaining a specific number of successes in a given number of trials in a binomial distribution.