For the Current Month, the Beginning Inventory of Elipresse Inc

question 93

Multiple Choice

For the current month, the beginning inventory of Elipresse Inc. consisted of 3 units that cost CHF5,500 each. During the month, the company made two purchases: 4 units at CHF5,800 each and 1 units at CHF5,750. Elipresse sold 5 units during the month. If Elipresse uses specific identification and wishes to maximize net income, the units costs allocated to cost of goods sold will be:

• A) 5 units@CHF5,500.
• B) 4 units@CHF5,800 and 1 unit @CHF5,750
• C) 3 units@CHF5,500 and 1 unit @CHF5,800
• D) 3 units@CHF5,500, 1 unit @CHF5,750and 1 unit @CHF5,800

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Definitions:

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, often at retirement.

Ordinary Annuity

An ordinary annuity consists of identical payments that are made at the conclusion of successive periods for a specified duration.

Deferred Annuity

An annuity contract that delays payments of income, installments or a lump sum until the investor elects to receive them.

Ordinary Annuity

Unchanging installments paid at the finale of successive terms over a fixed duration.