A Company Purchased 100 Units for $20 Each on January

question 40

Multiple Choice

A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold a total of 150 units for $45 each from March 1 through December 31. What is the amount of ending inventory on December 31, if the company uses the first-in, first-out (FIFO) inventory costing method? (Assume that the company uses a perpetual inventory system.)

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

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Definitions:

Killing Frost

A severe frost event causing significant damage or death to vegetation, effectively ending the growing season for many plants.

Density-Independent Factor

A factor that affects the size of populations regardless of their density, such as weather or natural disasters.

Predation

A biological interaction where a predator organism kills and consumes another organism known as the prey.

Semelparous

organisms that reproduce a single time before death, often investing all energy into one reproductive event.