Salmone Company Reported the Following Purchases and Sales of Its

question 12

Multiple Choice

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to ending inventory using LIFO. $$\begin{array} { | r | l | l | l | } \hline \text { Date } & \text { Activities } & \text { Units Acquir ed at Cost } & \text { Units Sold at Retail } \\\hline \text { May 1 } & \text { Beginning Inventory } & 150 \text { units } @ \$ 10.00 & \\\hline 5 & \text { Purchase } & 220 \text { units } @ \$ 12.00 & \\\hline 10 & \text { Sales } & & 140 \text { units } @ \$ 20.00 \\\hline 15 & \text { Purchase } & 100 \text { units } @ \$ 13.00 & \\\hline 24 & \text { Sales } & & 90 \text { units } @ \$ 21.00 \\\hline\end{array}$$

• A)$2,100
• B)$2,260
• C)$2,580
• D)$3,580
• E)$3,180

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Definitions:

Slope

A measure of the steepness or incline of a line, indicating the rate of change between two variables on a graph.

Isocost

A line representing all combinations of production factors that have the same total cost.

Capital

Refers to financial resources or assets owned by a business or individual that are used to generate wealth through investment or production.

Slope

In mathematics and economics, it refers to the measure of the steepness or incline of a line, often representing the rate of change between variables.