Quark IncJust Began Business and Made the Following Four Inventory Purchases

question 117

Multiple Choice

Quark Inc.just began business and made the following four inventory purchases in June: $$\begin{array} { r r r r } \text { June } & 1 & 150 \text { units } & \$ 990 \\\text { June } & 10 & 200 \text { units } & 1,344 \\\text { June } & 15 & 200 \text { units } & 1,368 \\\text { June } & 28 & 150 \text { units } & 1,062 \\& & & \$ 4,764\end{array}$$ A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand.Using the FIFO inventory method the amount allocated to ending inventory for June is

• A)$1326.
• B)$1320.
• C)$1404.
• D)$1416.

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Definitions:

Tender Offer

An offer made by an investor or acquiring company to purchase shares from the shareholders of a company at a specific price for a certain period.

Sale of Stock

This refers to the process of selling shares of a company to investors; this can be done via public offerings or through private sales.

Tax Avoidance

Tax avoidance involves legally exploiting the tax system to reduce tax liabilities, such as through deductions and credits, as opposed to tax evasion, which is illegal.

Tax Loss

Tax loss refers to a situation where business expenses exceed its incomes, which can be used to offset other taxable income.