Stone Company Uses the LIFO Method

question 26

Multiple Choice

Stone Company uses the LIFO method. At the end of the period there are 22 units left in inventory. Given the following, the cost of ending inventory is:

• A) $1,400
• B) $3,200
• C) $1,530
• D) $3,150
• E) None of these

---

Definitions:

Ratification

The act of formally approving an agreement or treaty, making it officially valid.

Principal

The party that an agent’s authority can bind or act on behalf of.

Agency

The fiduciary relationship that arises when one person consents to have another act on his behalf and subject to his control and the other consents to do so.

Power of Attorney

A legal document that grants one individual (the agent) the authority to act on behalf of another (the principal) in legal or financial matters.