Graham Company Uses a Periodic Inventory System

question 50

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, what is the value of the ending inventory?

• A)$780
• B)$900
• C)$984
• D)$2,136

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Definitions:

Fundus

The upper part of an organ, often referred to in context with the stomach or uterus, opposite from the opening.

Cardiac Region

A specific area of the stomach near the esophageal opening that acts as a sphincter to control the passage of food into the stomach.

Pyloric Opening

Opening between the stomach and the superior part of the duodenum.

Epiglottis

A leaf-shaped flap of cartilage located behind the tongue, which closes over the windpipe during swallowing to prevent food from entering the airway.