Use the Following Information for Questions $\text { Following information was available from the inventory records of Queen Company for July: }$

question 109

Multiple Choice

Use the following information for questions. $\text { Following information was available from the inventory records of Queen Company for July: }$
$\begin{array}{lrrr}&\text { Units }& \text { Unit Cost }& \text { Total.Cost }\\\text { Balance at July 1 } & 30,000 & £ 9.00 & £ 270,000 \\\text { Purchases: } & & & \\\quad \text { July 6 } & 20,000 & 10.20 & 204,000 \\\text { January 26 } & 27,000 & 10.40 & 280,800\end{array}$

$\begin{array}{cc}\text { Sales: }\\\text { July } 7 &(25,000) \\\text { July } 31 &\underline{(40,000) } \\\text { Balance at July } 31 &\underline{\underline{ 12,000}}\end{array}$
-What should be the inventory reported on Queen's July 31 statement of financial position using the FIFO inventory method?

• A) \( £ 108,000 \).
• B) \( £ 117,600 \).
• C) \( £ 124,800 \).
• D) \( £ 126,000 \).

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Definitions:

Strict Liability

A legal doctrine where a party is responsible for damages or loss, not due to negligence or intent, but because they are in a certain activity or role.

Dangerous Substances

Materials that can pose a risk to health, safety, or the environment due to their hazardous properties.

Harm

Harm refers to physical injury, psychological distress, financial loss, or damage to property caused by another's actions or negligence.

GAAP

Generally Accepted Accounting Principles, a set of rules encompassing the details, complexities, and legalities of business and corporate accounting.