Santa Fe Tile Company Had the Following Inventory Purchases and Sales

question 37

Multiple Choice

Santa Fe Tile Company had the following inventory purchases and sales during the month of May.The company uses the periodic inventory method. $$\begin{array} { | c | c | c | c | c | c | c | } \hline & \text { Purchases } & & & \text { Sales } & & \\\hline \text { Date } & \text { Units } & \text { Unit Cost } & \text { Total } & \text { Units } & \text { Unit Price } & \text { Total } \\\hline \text { May 1 } & 100 & \$ 4 & \$ 400 & & & \\\hline 5 & 200 & 5 & 1,000 & & & \\\hline 10 & & & & 100 & \$ 10 & \$ 1,000 \\\hline 15 & 100 & 6 & 600 & & & \\\hline 20 & 150 & 7 & 1,050 & & & \\\hline 25 & & & & 200 & 11 & \$ 2,200 \\\hline 30 & 160 & 8 & 1,280 & & & \\\hline & 710 & & \$ 4,330 & 300 & & \$ 3,200 \\\hline\end{array}$$
- If Santa Fe uses FIFO costing,how much was the Ending inventory balance?

• A) $2.980
• B) $3,120
• C) $2,200
• D) $2,930

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Definitions:

Causation

The action of causing something, indicating a relationship between two events where one is the result of the other.

Third-variable Problem

The third-variable problem occurs when a previously unconsidered variable affects both variables of interest, potentially falsely suggesting a causal relationship between them.

Correlational Studies

Research methods used to examine a relationship between two or more variables without manipulating them.

Random Assignment

A method used in experiments to assign participants to different groups using chance, ensuring each participant has an equal opportunity to be assigned to any group.