Given the Following Data, What Is the Cost of Ending

question 59

Multiple Choice

Given the following data, what is the cost of ending inventory rounded to the nearest whole dollar using periodic FIFO? $\begin{array} { | l | l | } \hline \text { Sales revenue } & 100 \text { units at } \$ 10 \text { per unit } \\\hline \text { Beginning inventory } & 50 \text { units at } \$ 8 \text { per unit } \\\hline \text { Purchases } & 90 \text { units at } \$ 9 \text { per unit } \\\hline\end{array}$

• A)$400
• B)$360
• C)$890
• D)$850

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Definitions:

Garnishment

Garnishment is a legal process by which a creditor can collect what a debtor owes by requiring a third party to turn over the debtor’s assets.

Judgment

A formal decision or determination made by a court regarding the rights and liabilities of the parties in a legal action.

Sheriff

An elected official in a county or independent city responsible for keeping peace and enforcing the law, often involved with serving legal documents and managing jails.

Subrogation

The legal right for insurers to pursue a third party that caused an insurance loss to the insured.