A Company Just Starting in Business Purchased Three Merchandise Inventory

question 28

Multiple Choice

A company just starting in business purchased three merchandise inventory items at the following prices.First purchase $80; Second purchase $95; Third purchase $85.If the company sold two units for a total of $270 and used FIFO costing, the gross profit for the period would be

• A)$95.
• B)$105.
• C)$90.
• D)$80.

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Definitions:

Vacation Time

Periods of time when an individual is not required to be at work or school, often used for rest, travel, or recreation.

Avoidance

A behavior or action taken to prevent an unpleasant situation or outcome from occurring.

Decision

The act of making a choice or coming to a conclusion after considering different options or information available.

Negotiation

The process by which two or more parties with differing objectives seek to find a mutual agreement.