A Company Just Starting in Business Purchased Three Merchandise Inventory

question 133

Multiple Choice

A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $65; Second purchase $78; Third purchase $68. If the company sold two units for a total of $200 and used FIFO costing the gross profit for the period would be

• A) $55.
• B) $57.
• C) $62.
• D) $68.

---

Definitions:

Common Features

Characteristics or attributes that are shared among a group of things or phenomena.

Punitive Punishment

A form of penalty intended as a sanction for wrongdoing, aimed at deterring future misconduct.

Ideology

A system of ideas, beliefs, and values that shapes a social, political, or economic program.

Corrections Industry

The sector of the economy that deals with the administration and running of prisons, jails, and other facilities for incarcerating individuals.