Graham Company Uses a Periodic Inventory System

question 49

Multiple Choice

Graham Company uses a periodic inventory system.Details for the inventory account for the month of January, 2011 are as follows: An end of the month (1/31/11) inventory showed that 180 units were on hand.If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

• A)$2,064
• B)$2,136
• C)$4,200
• D)$4,500

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Definitions:

Post-Purchase Processes

The series of steps and activities that occur after a consumer has bought a product, including evaluation of satisfaction and potential for repeat purchase.

Consumption Awareness

Consciousness regarding the impact of one’s consumption habits on economic, environmental, and social aspects.

Differentiated Marketing

A marketing strategy in which a company targets several market segments with a unique product or service offering for each.

Product Specialization

A strategy where a business focuses on the production and development of a particular product or range of products, often to achieve higher levels of efficiency and expertise.