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:

Large Intestine

The last section of the digestive system, where water is absorbed and stools are formed.

Stomach

An organ in the gastrointestinal tract that breaks down food through the secretion of enzymes and acid, preparing it for further digestion and absorption.

Peristalsis

The series of wave-like muscle contractions that moves food through the digestive tract.

Anesthesia

A state of controlled, temporary loss of sensation or awareness that is induced for medical purposes, such as during surgeries or procedures that would otherwise cause pain or discomfort.