Versace Company, an Italian Subsidiary of a US Company, Uses

question 126

Multiple Choice

Versace Company, an Italian subsidiary of a US company, uses the periodic inventory system. At November 1, the beginning inventory consisted of 2,400 units that cost €120 each. During the month, the company made two purchases: 1,000 units at €130 each and 4,000 units at €135 each. Versace sold 4,300 units during November. Using the LIFO cost flow assumption, what is the ending inventory?

• A) €372,000.
• B) €379,000.
• C) €401,460.
• D) €418,500.

---

Definitions:

Raindrops

Small droplets of water that fall from clouds in the atmosphere.

Coriolis Effect

A phenomenon that causes moving particles or objects within a rotating system, such as the Earth, to deflect to the right in the Northern Hemisphere and to the left in the Southern Hemisphere.

Atmosphere Rotating

The movement of the Earth's atmosphere in response to the planet's rotation, influencing weather patterns and climate systems.

High Pressure

Conditions involving significantly greater than normal atmospheric pressure, often affecting material properties and chemical reactions.