Fulbright Corp

question 147

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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In comparing the ending inventory balances of FIFO and LIFO, the ending inventory value under FIFO less the ending inventory balance under LIFO results in a difference of:

• A) $400.
• B) $(400).
• C) $0.
• D) $50.

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Definitions:

Three-Dimensional

Having, pertaining to, or appearing to possess length, width, and depth, giving the perception of fullness or volume.

Moon Illusion

The optical illusion where the moon appears larger near the horizon than it does while higher up in the sky.

Horizon Moon

The optical illusion observed when the moon appears larger near the horizon than it does while higher up in the sky.

Motion Pictures

A series of still images that, when shown on a screen, create the illusion of moving images due to the phi phenomenon.