A Company Had the Following Purchases and Sales During Its

question 164

Multiple Choice

A company had the following purchases and sales during its first year of operations: $$\begin{array} { | l | l | l | } \hline & \text { Purchases } & \text { Sales } \\\hline \text { January: } & 10 \text { units at } \$ 120 & 6 \text { units } \\\hline \text { February: } & 20 \text { units at } \$ 125 & 5 \text { units } \\\hline \text { May: } & 15 \text { units at } \$ 130 & 9 \text { units } \\\hline \text { September: } & 12 \text { units at } \$ 135 & 8 \text { units } \\\hline \text { November: } & 10 \text { units at } \$ 140 & 13 \text { units } \\\hline\end{array}$$ On December 31, there were 26 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

• A)$3,200.
• B)$3,405.
• C)$5,400.
• D)$3,364.
• E)$3,270.

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Definitions:

S&P 500

A benchmark tracking the performance of 500 major U.S. companies listed on stock exchanges.

Diversification Benefit

The reduction of risk achieved by allocating investments among various financial instruments, industries, or other categories to maximize return.

Correlation Coefficients

A statistical measure that describes the extent to which two variables change together.

Systematic Risk

Systematic risk refers to the risk inherent to the entire market or market segment, often influenced by factors like economic, political, and social changes.