Glasgow Enterprises Started the Period with 80 Units in Beginning

question 101

Multiple Choice

Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each. During the period, the company purchased inventory items as follows. Glasgow sold 220 units after purchase 3 for $17.00 each. Glasgow's ending inventory under LIFO would be:

• A) $2,730.
• B) $2,460.
• C) $2,220.
• D) $1,950.

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Definitions:

Rival Good

A type of good that cannot be consumed by more than one person at the same time, because its consumption by one person reduces its availability for others.

Marginal External Cost

The additional cost to society that arises from one more unit of a good being produced, not considered by the producer.

Optimal Fee

The best possible charge for a service or product that maximizes profit without discouraging consumers from buying.

Profitability

The degree to which a business or activity yields profit or financial gain.