Lauer Corporation Uses the Periodic Inventory System and Has Provided

question 33

Multiple Choice

Lauer Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers:

$$\begin{array}{ll}\begin{array} { ll } \text { Date } & \text { Transaction } \\1 / 1 & \text { Beginning Inventory } \\5 / 5 & \text { Purchase } \\8 / 10 & \text { Purchase } \\10 / 15 & \text { Purchase }\end{array}\begin{array} { l l} \text { Number of Units } & \text { Cost per Unit } \\100& \$ 800 \\200 & \$ 900 \\300 & \$ 1,000 \\200 & \$ 1,050\end{array}\end{array}$$
During the year,750 laptop computers were sold. What was cost of goods sold using the LIFO cost flow assumption?

• A)$717,500
• B)$730,000
• C)$703,125
• D)$725,500

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Definitions:

Perceptual Set

A mental predisposition to perceive one thing and not another, influenced by expectations, culture, and other psychological factors.

Retinal Disparity

The slight difference in the visual images that reach each eye, leading to the perception of depth.

Kinesthesis

The sense that detects body position, movement, and balance, often referred to as proprioception.

Adaptation

The process of change by which an organism or species becomes better suited to its environment.