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:

Decision Criteria

Decision criteria are the standards or benchmarks used to guide the decision-making process, helping to evaluate and prioritize different options.

Business Problem

Refers to any issue or challenge within a business that needs to be addressed to improve performance, revenue, or operational efficiency.

Product's Features

The specific characteristics, capabilities, or qualities of a product that are highlighted to differentiate it from competitors.

Salesperson

An individual who sells goods or services to customers aiming to meet or exceed sales objectives.