A Company Just Starting in Business Purchased Three Inventory Items

question 133

Multiple Choice

A company just starting in business purchased three inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $260 and used FIFO costing, the gross profit for the period would be

• A) $85.
• B) $95.
• C) $80.
• D) $70.

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Definitions:

Zoning Laws

Regulations established by local governments determining how property in specific geographic zones can be used, affecting land use, building heights, density, and the nature of the business activity within areas.

Economic Revival

Refers to the process of economic recovery following a period of recession or depression, marked by an increase in production, employment, and consumer spending.

New Federalism

A political philosophy that advocates for the transfer of certain powers from the federal government back to the states, aiming to increase local control and reduce the scope of federal authority.