A Company Purchased 100 Units for $20 Each on January

question 74

Multiple Choice

A company purchased 100 units for $20 each on January 31.It purchased 100 units for $30 on February 28.It sold 150 units for $45 each from March 1 through December 31.If the company uses the First-In,First-Out inventory costing method,what is the amount of ending inventory on December 31?

• A) $1,500
• B) $1,250
• C) $1,000
• D) $2,250

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Definitions:

Misdemeanor

A criminal offense that is less severe than a felony, often punishable by fines or a short term in jail.

Strict Liability

A legal principle that makes an individual or organization accountable for their actions or products, eliminating the requirement for the plaintiff to demonstrate negligence or fault.

Insider Trading

Illegal buying or selling of a corporation's stock or other securities by individuals with access to nonpublic, material information about the company.

Tipping

Giving money to someone for their service, more than what is due for the service itself.