The Following Inventory Transactions Took Place for NPR Corporation for the Month

question 156

Multiple Choice

The following inventory transactions took place for NPR Corporation for the month of May: $\begin{array}{|l|l|c|c|}\hline \text { Date } & \text { Event } & \text { Quantity } & \text { Cost/Selling Price } \\\hline \text { May 1 } & \text { Beginning Inventory } & 1,000 & \$ 3.55 \\\hline \text { May 5 } & \text { Purchase } & 6,000 & 3.10 \\\hline \text { May 10 } & \text { Purchase } & 2,000 & 3.75 \\\hline \text { May 15 } & \text { Sale } & 3,000 & 6.00 \\\hline \text { May 20 } & \text { Sale } & 2,000 & 6.00 \\\hline \text { May 22 } & \text { Purchase } & 5,000 & 3.45 \\\hline \text { May 24 } & \text { Purchase } & 2,000 & 3.75 \\\hline \text { May 25 } & \text { Sale } & 7,000 & 6.00 \\\hline\end{array}$
The ending inventory balance for NPR Corporation, assuming the company uses a perpetual inventory system, and a first-in, first-out (FIFO) cost formula is

• A) $15,000.
• B) $14,400.
• C) $12,850.
• D) $13,800.

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Definitions:

Compounded Annually

The process where the interest earned on an investment is reinvested, and subsequent interest calculations are made on the initial principal plus all accumulated interest.

Invest

Engaging capital with the ambition of realizing gains or income.

Purchase

The act of acquiring goods, services, or assets in exchange for money or value.

Retirement Savings

Funds that an individual has saved and set aside for the purpose of providing income during retirement.