Fulbright Corp

question 72

Multiple Choice

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition) :

40 units at $100
70 units at $80
170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.
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Ending inventory using the LIFO method is:

• A) $650.
• B) $1,000.
• C) $707.
• D) $600.

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Definitions:

Supply Chain

The sequence of processes involved in the production and distribution of a commodity, from raw materials to delivery of the finished product to the consumer.

Lower Tariffs

Reducing taxes or duties to be paid on imported goods, usually to encourage international trade.

Firm's Production

The total output of goods and services produced by a company within a specific period.

Gray Market

The trade of legal goods through unauthorized distribution channels, distinct from black market goods which are illegal.