The Following Data Is Available for an Item of JNC

question 95

Multiple Choice

The following data is available for an item of JNC Inc.for the month of March: $$\begin{array} { r l l } \text { March } 1 & \text { Inventory } & 15 \text { units at } \$ 10 \text { each } \\15 & \text { Purchase } & 30 \text { units at } \$ 18 \text { each } \\31 & \text { Purchase } & 24 \text { units at } \$ 15 \text { each } \\& \text { Sale } & 30 \text { units }\end{array}$$ ? ?Using the first-in, first-out method, what is JNC Inc.'s cost of ending inventory for March??

• A) $630
• B) $510
• C) $420
• D) $360

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Definitions:

U.S. GAAP

Generally Accepted Accounting Principles in the United States, which are a set of rules and standards for financial reporting.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the interest payments due on any type of debt, including loans, bonds, and lines of credit.

Convertible Bonds

Convertible bonds are fixed-income securities that the holder can convert into a specified number of shares of the issuing company, usually at a pre-determined time.

Basic EPS

A measure of a company's profitability, calculated as net income divided by the number of outstanding shares of common stock; stands for Basic Earnings Per Share.