Samson Company Had the Following Balances and Transactions During 2012

question 3

Multiple Choice

Samson Company had the following balances and transactions during 2012. What would the company's Inventory amount be on the December 31, 2012 balance sheet if the periodic LIFO costing method is used? (Answers are rounded to the nearest dollar.)

• A)$560
• B)$537
• C)$554
• D)$490

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Definitions:

Subcontractors

Independent workers or companies hired on a contractual basis to perform part of the work assigned in a project.

FICO

A data analytics company known for creating the most widely used consumer credit scores that determine creditworthiness.

Payroll Liabilities

Obligations arising from payroll, including amounts owed to employees for wages and salaries and amounts due to government agencies for payroll taxes.

FICA

The Federal Insurance Contributions Act; it mandates a payroll tax equally shared between employees and employers to fund Social Security and Medicare.