A Company Just Starting in Business Purchased Three Merchandise Inventory

question 163

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 $290 and used FIFO costing, the gross profit for the period would be

• A) $115.
• B) $125.
• C) $110.
• D) $100.

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Definitions:

Proximity Switch

A sensor that detects the presence or absence of an object without physical contact, usually used in industrial applications to control machinery.

Capacitor Proximity Sensors

Sensors that use the capacitance change principle to detect the presence or absence of objects, often used in material handling and level control applications.

Conductive Materials

Materials that permit the flow of electric current, often used in electrical and electronic applications for wiring and components.