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:

Oedipal Complex

A concept in psychoanalytic theory introduced by Sigmund Freud which posits a child's unconscious desire for the opposite-sex parent and jealousy toward the same-sex parent.

Mother

A female parent or guardian who provides care, protection, and guidance to her offspring.

Defence Mechanisms

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety or unacceptable thoughts and feelings.

Psychoanalytic Manoeuvre

A technique used in psychoanalysis to explore the unconscious motives behind one’s behaviors and thoughts.