Effie Company Uses a Periodic Inventory System An End of the Month (1/31/15) Inventory Showed That 160

question 115

Multiple Choice

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2015 are as follows: $$\begin{array} { l c c r } & \text { Units } & \text { Per unit price } & \text { Total } \\\text { Balance, } 1 / 1 / 15 & 200 & \$ 5.00 & \$ 1,000 \\\text { Purchase, } 1 / 15 / 15 & 100 & 5.30 & 530 \\\text { Purchase, } 1 / 28 / 15 & 100 & 5.50 & 550\end{array}$$ An end of the month (1/31/15) inventory showed that 160 units were on hand. If the company uses LIFO, what is the value of the ending inventory?

• A) $800
• B) $832
• C) $848
• D) $868

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Definitions:

Actual Malice

A legal standard used to prove that a false statement was made with knowledge of its falsity or with reckless disregard for the truth, particularly in defamation cases.

Reckless Disregard

A conscious indifference to the rights or safety of others that represents a significant deviation from reasonable conduct.

Knowledge of Falsity

Pertains to the awareness that a particular statement or claim is false.

Fundamental Right

A right considered to be essential for the liberty or well-being of individuals, often protected by law.