Echo Sound Company Just Began Business and Made the Following

question 22

Multiple Choice

Echo Sound Company just began business and made the following four inventory purchases in June: $$\begin{array} { r r r r } \text { June } & 1 & 150 \text { units } & \$ 1,040 \\\text { June } & 10 & 200 \text { units } & 1,560 \\\text { June } & 15 & 200 \text { units } & 1,680 \\\text { June } & 28 & 150 \text { units } & 1,320 \\& & & \$ 5,600 \\\hline\end{array}$$ A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand.The inventory method which results in the highest gross profit for June is

• A)the FIFO method.
• B)the LIFO method.
• C)the average cost method.
• D)not determinable.

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Definitions:

Bouquets

Arrangements of flowers that are typically gathered at the stems and can be given as gifts for various occasions.

Production Function

A mathematical relationship that describes how inputs like labor and capital are transformed into output.

J/L Ratio

The ratio of job vacancies to labor, often used to describe the labor market's health or tightness.

Cartoonists' Labor

The process and artistic effort involved in producing comics and animation, showcasing unique storytelling and visual humor.