Graham Company Uses a Periodic Inventory System

question 149

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, what is the value of the ending inventory?

• A) $520
• B) $600
• C) $656
• D) $1,424

---

Definitions:

Knowledge

Information, understanding, or skill that one gets from experience or education.

Value

The importance, worth, or usefulness of something, often measured in terms of money, utility, or general desirability.

Departmental Information System

A system designed to support the information management needs of a specific department within an organization, enhancing its efficiency and productivity.

FAIS

Financial Accounting Information System, a specialized subsystem of the information system that collects, processes, and reports information related to the financial aspects of business activities.