A Company Purchased 100 Units for $20 Each on January

question 55

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 Last-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:

Common-Carrier Delivery Contracts

Legal agreements involving firms that offer transportation services to the general public under regulated conditions.

Destination Contracts

Agreements in which the seller is responsible for delivering goods to a specific location, with the risk of loss transferring upon arrival.

Original

Pertaining to the first or earliest form of something, often indicating authenticity or uniqueness.

Origin Contract

A contractual agreement specifying the original terms and conditions set forth by the parties involved in a transaction or negotiation.