(Situation F) the Sales (In Thousands of Dollars) of Automobiles

question 34

Multiple Choice

(Situation F) The sales (in thousands of dollars) of automobiles by the three largest American automakers from 1986 through 1992 are shown in the table below.
$$\begin{array} { l r c r } \hline \text { Year } & \text { G.M. } & \text { Ford } & \text { Chrysler } \\\hline 1986 & 8993 & 5810 & 1796 \\1987 & 7101 & 4328 & 1225 \\1988 & 6762 & 4313 & 1283 \\1989 & 6244 & 4255 & 1182 \\1990 & 7769 & 4934 & 1494 \\1991 & 8256 & 5585 & 2034 \\1992 & 9305 & 5551 & 2157 \\\hline\end{array}$$
-Using 1986 as the base year, find the simple composite index for 1990.

• A) 85.53
• B) 116.92
• C) 65.81
• D) 151.95

---

Definitions:

Ending Inventory

The aggregate value of products available for purchase at the conclusion of a financial period.

LIFO Method

Last In, First Out method; an inventory valuation technique where the latest items added to inventory are the first ones removed during sales.

FIFO

"First In, First Out," an inventory valuation method where the earliest items purchased are the first to be sold.

Inventory

The total amount of goods available for sale or use by a business.