Wakefield Company Uses a Perpetual Inventory System

question 26

Multiple Choice

Wakefield Company uses a perpetual inventory system. In August, it sold 2,000 units from its LIFO-base inventory, which had originally cost $35 per unit. The replacement cost is expected to be $45 per unit. The company is planning to reduce its inventory and expects to replace only 1,500 of these units by December 31, the end of its fiscal year. The company replaced 1,500 units in November at an actual cost of $50 per unit.
Based on the preceding information, in the entry to record the replacement of the 1,500 units in November, Inventory will be debited for:

• A) $52,500.
• B) $75,000.
• C) $67,500.
• D) $60,000.

Differentiate between real and personal property.

Recognize the protections afforded to property owners by the Constitution.

Identify common ways in which property ownership can be obtained.

Understand the characteristics and legal implications of both tangible and intangible property.

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Definitions:

Cytoplasm

The jelly-like substance within a cell enclosed by the cell membrane, containing all organelles and cell parts.

Nucleus

Of an atom, central core area occupied by protons and neutrons. Of a eukaryotic cell, organelle with a double membrane that holds the cell’s DNA.

Nitrogenous Base

A molecule found in DNA and RNA that encodes the genetic information in cells.

DNA

A molecule comprising nucleotide chains that encode genetic information vital for the development, functioning, and reproduction of all living organisms and many viruses.