A Company Just Starting in Business Purchased Three Merchandise Inventory

question 77

Multiple Choice

A company just starting in business purchased three merchandise inventory items at the following prices. March 2, $150; March 7, $160; and March 15, $180. If the company sold two units for $250 each on March 10 and March 20, and used the FIFO cost formula in a perpetual inventory system, the gross profit for March would be

• A) $200.
• B) $190.
• C) $180.
• D) $150.

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Definitions:

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles, and also mediates sensory information.

Peripheral Nervous

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the CNS to limbs and organs.

Central Nervous

Pertains to the part of the nervous system consisting of the brain and spinal cord, which integrates information and coordinates all bodily functions.

Knee-Jerk Reflex

A rapid, automatic response to a stimulus, such as a physical tap, that causes the knee to jerk involuntarily.