XYZ Inc Uses the Average Cost Formula in a Perpetual Inventory

question 100

Multiple Choice

XYZ Inc. uses the average cost formula in a perpetual inventory system. Use the following
information for the month of June for questions . (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)
-If XYZ Inc. was using the FIFO cost formula instead of average, gross profit from the June 8 sale would be

• A)higher.
• B)lower.
• C)the same.
• D)cannot be determined.

---

Definitions:

Retrograde Amnesia

A loss of memory-access to events that occurred, or information that was learned, before an injury or the onset of a disease.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), often associated with alcoholism, characterized by short-term memory loss and confabulation.

Declarative Memory

A type of long-term memory that involves the ability to recall factual information, such as events, words, and concepts.

Short-Term Memory

The component of memory where small amounts of information can be stored for a short period of time, typically seconds to minutes.