Nordic Industries Uses a Periodic Inventory System

question 16

Multiple Choice

Nordic Industries uses a periodic inventory system.During its first month of operations, Nordic Industries purchased inventory as follows:

There were 100 units in ending inventory on January 31.
-Use the information above to answer the following question.Under the LIFO cost method,what is the cost of goods sold for January?

• A) $17,250
• B) $19,500
• C) $18,750
• D) $18,000

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Future Cash Flows

The anticipated receivable or payable cash amounts of a company, used for investment analysis and financial planning.

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns.

Time Periods

Distinct intervals of time used for financial reporting, planning, and forecasting, which can range from short-term to long-term durations.