Graham Company Uses a Periodic Inventory System

question 171

Multiple Choice

Graham Company uses a periodic inventory system. Details for the inventory account for the month of January 2014 are as follows: An end of the month (1/31/14) inventory showed that 120 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

• A) $1,376
• B) $1,424
• C) $2,800
• D) $3,000

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Definitions:

Higher-order Conditioning

A form of learning in which a stimulus is paired with a previously conditioned stimulus, creating a new conditioned response.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention; in classical conditioning, it becomes associated with an unconditioned stimulus.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the effects of consequences on behavior.