Salmone Company Reported the Following Purchases and Sales of Its

question 258

Multiple Choice

Salmone Company reported the following purchases and sales of its only product.Salmone uses a periodic inventory system.Determine the cost assigned to ending inventory using LIFO.
$$\begin{array} { | c | l | l | l | } \hline \text { Date } & { \text { Activities } } & \text { Units Acquired at Cost } & \text { Units Sold at Retail } \\\hline \text { May 1}& \text { Beginning Inventory } & 150 \text { units @ } \$ 10.00 & \\\hline 5& \text { Purchase } & 220 \text { units @ } \$ 12.00 & \\\hline 10& \text { Sales } & & 140 \text { units @ \$20.00 } \\\hline 15& \text { Purchase } & 100 \text { units @ } \$ 13.00 & \\\hline 24& \text { Sales } & & 90 \text { units @ \$21.00 } \\\hline\end{array}$$

• A) $2,260
• B) $3,180
• C) $2,580
• D) $3,580
• E) $2,100

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Definitions:

Retirement Plan Distributions

Payments made from a retirement plan, which may include pensions, 401(k)s, or IRA distributions, and can be taxable or tax-free, depending on the plan.

Coverdell Education Savings Account

A tax-advantaged savings account in the United States designed to encourage saving for future education expenses.

CESA Contribution

Funds put into a Coverdell Education Savings Account (CESA) to finance a beneficiary's educational expenses.

AGI

Adjusted Gross Income is the gross income of an individual or entity minus specific deductions, used to calculate taxable income on U.S. federal income taxes.