Melbourne Company Uses the Perpetual Inventory System and LIFO Cost

question 94

Multiple Choice

Melbourne Company uses the perpetual inventory system and LIFO cost flow method. Melbourne purchased 600 units of inventory that cost $2.75 each. At a later date, the company purchased an additional 700 units of inventory that cost $3.25 each. If the company sells 900 units of inventory, what amount of ending inventory will appear on a balance sheet prepared immediately after the sale?

• A)$2,825
• B)$1,200
• C)$1,100
• D)$1,300

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Definitions:

Cerebral Hemispheres

The two halves of the brain, each controlling the opposite side of the body and responsible for different functions.

Myelin

Myelin is a fatty substance that forms a sheath around the axons of many neurons, speeding up the transmission of electrical signals in the nervous system.

Insulates

To cover, line, or separate with a material that stops or slows down heat, electricity, or sound from passing through.

Neuron

A nerve cell that is the building block of the nervous system, responsible for receiving, processing, and transmitting information through electrical and chemical signals.