Effie Company Uses a Periodic Inventory System

question 119

Multiple Choice

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2015 are as follows: 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:

Cyclical Effect

A pattern of fluctuations observed in economic or business activities corresponding to the phases of the business cycle, such as expansion, peak, contraction, and trough.

Seasonal Effect

A periodic effect that recurs or fluctuates in a predictable pattern over a year due to the change in seasons.

Time Series

A sequence of data points collected or recorded at successive time intervals, often analyzed to identify trends, cycles, and forecasts.

Moving Average Model

A statistical model used for forecasting future values based on past averages of data points.