A Company Had 22 Units of Inventory at a Cost

question 174

Multiple Choice

A company had 22 units of inventory at a cost of $26 each on November 1.On November 2,the company purchased 27 units at $27 each.On November 6,the company purchased 23 units at $28 each.On November 8,the company sold 52 units for $71 each.Given this information,determine the cost of the 52 units sold using the LIFO periodic inventory method.

• A)$1,997
• B)$1,456
• C)$1,436
• D)$1,425
• E)$1,385

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Definitions:

Assumptions

Beliefs or ideas taken for granted without proof, often serving as a basis for further reasoning or arguments.

Phenomena

Observable events or occurrences that can be investigated scientifically.

Theory

A set of principles on which the practice of an activity is based or an explanation of the principles of phenomena.

Confirmation Bias

A cognitive bias that involves favoring information that confirms previously existing beliefs or biases.