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:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s which transformed economies that had been based on agriculture and handicrafts into economies based on large-scale industry, mechanized manufacturing, and the factory system.

Social Solidarity

The bonds that unite members of a society or community, fostering cohesion and mutual support among individuals.

Social Structures

The organized pattern of social relationships and social institutions that together compose society.

Suicide Rates

The statistical measure of the number of suicide deaths in a specified population, typically expressed per 100,000 individuals per year.