Lauer Corporation Uses the Periodic Inventory System and Has Provided

question 22

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 ending inventory using the LIFO cost flow assumption?

• A)$40,000
• B)$52,500
• C)$60,000
• D)$55,000

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Definitions:

Adaptation-level Theory

A psychological theory suggesting that individuals base their judgments of new stimuli on their past experiences and the level of adaptation they have achieved.

James-Lange Theory

A theory suggesting that emotions result from the experience of physiological reactions in the body.

Emotional Preference

An individual's inclination towards certain feelings or emotional states over others, often influencing their choices and behavior.

Two-factor Theory

A psychological theory that proposes emotion is based on two factors: physiological arousal and cognitive label.