Echo Sound Company Just Began Business and Made the Following

question 117

Multiple Choice

Echo Sound Company just began business and made the following four inventory purchases in June: A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. The inventory method which results in the highest gross profit for June is

• A) the FIFO method.
• B) the LIFO method.
• C) the average cost method.
• D) not determinable.

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Definitions:

Retained

Kept or continued to have possession or use of something, often used in the context of keeping information, positions, or objects.

Confidentiality

The ethical principle or legal right that a professional or organization should not disclose information about a client or patient to others without the consent of the individual.

Retained

Retained refers to something that is kept or continued to be used, held in position, or remembered.