A Company Just Starting Business Made the Following Four Inventory

question 103

Multiple Choice

A company just starting business made the following four inventory purchases in June: $\begin{array}{lrlr}\text { June } 1 & 150 \text { units } & \$ 390 \\\text { June } 10 & 200 \text { units } & 585 \\\text { June } 15 & 200 \text { units } & 630 \\\text { June } 28 & 150 \text { units } & 510\\&&\$2,115\end{array}$ A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. The inventory method which results in the highest gross profit for June is

• A) the FIFO method.
• B) the LIFO method.
• C) the weighted average unit cost method.
• D) not determinable.

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Definitions:

Inbound Movement

The process of goods being transported into a specific area or facility, particularly in logistics and supply chain management.

Manufacturing Process

The series of operations involved in the production of goods, often involving assembly or the transformation of raw materials into finished products.

Distribution Center

A warehouse or specialized facility where products are stored and sorted for further distribution to retailers or customers.

Finished Goods

are products that have completed the manufacturing process but have not yet been sold or distributed to the end consumer.