Classic Floors Has the Following Inventory Data Assuming That a Perpetual Inventory System Is Used, What Is

question 107

Multiple Choice

Classic Floors has the following inventory data: $$\begin{array} { r l c } \text { July } 1 & \text { Beginning inventory } & 30 \text { units at } \$ 6.00 \\5 & \text { Purchases } & 120 \text { units at } \$ 6.60 \\14 & \text { Sale } & 80 \text { units } \\21 & \text { Purchases } & 60 \text { units at } \$ 7.20 \\30 & \text { Sale } & 56 \text { units }\end{array}$$ Assuming that a perpetual inventory system is used, what is the value of ending inventory on a LIFO basis for July?

• A)$931.20
• B)$1,404.00
• C)$708.00
• D)$472.80

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Definitions:

Incentive Fee

An incentive fee is a fee charged by a fund manager based on the fund's performance, encouraging the manager to achieve superior returns.

Benchmark

A standard or point of reference against which the performance of a security, mutual fund, or investment manager can be measured.

Management Fee

A charge paid to a company's managers for their services, often a percentage of managed assets or profits.

Net Return

The profit or loss from an investment after all expenses, including taxes, fees, and costs, have been subtracted.