Use the Following Information for Questions

question 93

Multiple Choice

Use the following information for questions.
Tehran Ltd.uses FIFO to cost its inventory.The following information is available for Tehran's inventory of product # 101:
-Assuming Tehran uses the periodic inventory system, the entry to account for the March 1 purchase is

• A)debit Inventory and credit Accounts Payable, $875.
• B)debit Purchases and credit Accounts Payable, $875.
• C)debit Accounts Payable and credit Purchases, $875.
• D)debit Accounts Payable and credit Inventory, $875.

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Definitions:

Logistics Department

A division within a company or organization responsible for managing the movement and storage of goods, services, and information.

Variable Costs

Expenses that change in proportion to the production or sales levels, including labor and materials.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range or time period, like rent or salaries.

Sensor Division

A specialized unit within a company focused on the development, production, and sale of sensor technology.