A Company Just Starting in Business Purchased Three Merchandise Inventory

question 13

Multiple Choice

A company just starting in business purchased three merchandise inventory items at the following prices: first purchase $64; second purchase $76; and third purchase $68.If the company sold two units for a total of $200 and used FIFO costing, the gross profit for the period would be

• A)$56.
• B)$60.
• C)$62.
• D)$68.

---

Definitions:

Encoding

The process of converting information into a form that can be stored in the memory.

Storage

In the context of memory, it refers to the process of maintaining information in the brain over time.

Priming

The process by which exposure to a stimulus influences a response to a subsequent stimulus, making certain responses more likely.

Storage

In psychology, the retention of information or experiences in the brain over time, a key aspect of the memory process.