Effie Company Uses a Periodic Inventory System

question 57

Multiple Choice

Effie Company uses a periodic inventory system.Details for the inventory account for the month of January 2022 are as follows: An end of the month (1/31/22) inventory showed that 160 units were on hand.If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

• A)$1,120
• B)$1,188
• C)$1,532
• D)$1,600

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Definitions:

Kurtosis

A statistical measure that describes the shape of a distribution's tails in comparison to a normal distribution.

Distribution

The way in which something is shared out among a group or spread over an area, often referring to the statistical spread of values in a dataset.

Negatively Skewed

Describes a distribution of data where the tail is longer on the left side of the distribution's peak, indicating most values are high and few are low.

Tail

The far end portions of a distribution curve where the likelihood of values occurring becomes smaller; in skewed distributions, one tail may be longer than the other.