A Company Uses Periodic Inventory in Connection with LIFO Costing

question 16

Multiple Choice

A company uses periodic inventory in connection with LIFO costing. The company began the year with zero inventory balance. They had the following transactions during the year: Purchased 50 units at $4.00 per unit Purchased 100 units at $4.10 per unit Sold 80 units at a price of $12.00 per unit Purchased 60 units at $3.20 per unit Sold 75 units at a price of $12.75 per unit
At the end of the year, they counted the inventory and found 55 units remaining. How much was the Cost of sales for the year? (Please round to the nearest whole dollar.)

• A)$626
• B)$680
• C)$582
• D)$541

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Definitions:

Proportion

Refers to the relative size or scale of parts of a whole to each other or another quantity, often used in mathematics, art, and design.

Adaptive Function

Psychological and physiological mechanisms evolved to help organisms adjust and survive in their environment.

Hypothesis

An initial hypothesis intended to explain an event, serving as a basis for subsequent research.

Sleep Disorder

A condition that disrupts normal sleep patterns, leading to distress and affecting daytime functioning.