Eneri Company's Inventory Records Show the Following Data A Physical Inventory on December 31 Shows 4,000 Units on Units

question 167

Multiple Choice

Eneri Company's inventory records show the following data: $\begin{array}{lcrr}&\text { Units }&\text { Unit Cost }\\\text { Inventory, January 1 } & 10,000 & \$ 9.20 \\\text { Purchases: } \text { June 18 } & 9,000 & 8.00 \\ \text { November 8 } & 6,000 & 7.00\end{array}$ A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. Under the LIFO method, cost of goods sold is

• A) $28,000.
• B) $169,200.
• C) $173,040.
• D) $178,000.

---

Definitions:

Economically Emancipated

Refers to being financially independent, free from financial constraints or reliance on institutional support.

Paramount Decision

A landmark 1948 Supreme Court ruling against Paramount Pictures, which ended vertical integration and exclusive contracting practices in the film industry, drastically changing the studio system.

Vertical Integration

A business strategy where a company controls multiple stages of production, distribution, or supply chain within the same industry to increase control and reduce costs.

Creative Accounting

Practices that may push the boundaries of standard accounting rules to depict a more favorable financial picture of a business, sometimes straddling the line of legality.