Data Related to an Item of Inventory If Ritz Ltd

question 151

Multiple Choice

data related to an item of inventory: $$\begin{array} { l l } \text { Inventory, March } 1 & 100 \text { units } @ \$ 8.10 \\\text { Purchase, March } 7 & 350 \text { units } @\$ 8.50 \\\text { Purchase, March } 16 & 70 \text { units } @\$ 9.10 \\\text { Inventory, March } 31 & 150 \text { units }\end{array}$$ If Ritz Ltd. uses FIFO, the value assigned to cost of goods sold is

• A) $3,105.
• B) $3,187.
• C) $2,295.
• D) $1,369.

Differentiate between the accounts impacted in the perpetual inventory system.

Know how to record freight charges and merchandise purchases on credit under both systems.

Understand the implications of merchandise returns on account balances under the perpetual inventory system.

Familiarize with the necessity of a physical inventory under the periodic system and its absence in the perpetual system.

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Definitions:

Depressants

Substances that reduce neural activity and slow down the functions of the central nervous system.

Stimulants

Drugs that increase activity in the brain and nervous system, leading to increased alertness, attention, and energy.

Tetrahydrocannabinol

A principal psychoactive constituent of cannabis, responsible for its mind-altering effects.

Psilocybin

A naturally occurring psychedelic compound produced by more than 200 species of mushrooms, known for its ability to induce altered states of consciousness.