Graham Company Uses a Periodic Inventory System

question 133

Multiple Choice

Graham Company uses a periodic inventory system. Details for the inventory account for the month of January, 2010 are as follows: An end of the month (1/31/10) inventory showed that 120 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

• A) $1,376
• B) $1,424
• C) $2,800
• D) $3,000

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Definitions:

Mass Media

Various forms of communication, including newspapers, magazines, radio, television, and the Internet, that reach a large audience.

Waking Hours

The part of the day during which an individual is awake and active.

Passive Consumers

Individuals who consume products or media without actively engaging or questioning the content or quality.

Media

Various means of communication, such as television, radio, newspapers, and the internet, that reach or influence people widely.