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:

Liquidity Preference Theory

A theory suggesting that people prefer to hold their wealth in liquid form for ease of transactions and as a precaution against uncertainty.

Interest Rate

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage of the principal amount per period.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.

Money Demand Curve

A graph showing the relationship between the quantity of money that people hold and the interest rate, indicating how the demand for money changes as interest rates vary.