A Company Just Starting in Business Purchased Three Merchandise Inventory

question 166

Multiple Choice

A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be

• A) $65.
• B) $75.
• C) $60.
• D) $50.

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Definitions:

Psychology

Research into the human brain and its activities, with an emphasis on how they determine behavior in particular contexts.

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The scientific study of the mind and behavior through experiments, observations, and analysis to understand mental functions and social behavior.

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The inherent characteristics, including ways of thinking, feeling, and acting, that all humans tend to have.

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The impact of societal norms, values, and traditions on an individual's behavior, beliefs, and attitudes.