A Company Had the Following Purchases and Sales During Its

question 29

Multiple Choice

A company had the following purchases and sales during its first year of operations: $$\begin{array} { | l | l | l | } \hline & \text { Purchases } & \text { Sales } \\\hline \text { January. } & 10 \text { units at } \$ 120 & 6 \text { units } \\\hline \text { February. } & 20 \text { units at } \$ 125 & 5 \text { units } \\\hline \text { May. } & 15 \text { units at \$130 } & 9 \text { units } \\\hline \text { September: } & 12 \text { units at \$135 } & 8 \text { units } \\\hline \text { November: } & 10 \text { units at } \$ 140 & 13 \text { units } \\\hline\end{array}$$ On December 31, there were 26 units remaining in ending inventory.
-Using the Periodic FIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

• A) $3,405.
• B) $3,270.
• C) $3,200.
• D) $3,445.
• E) $3,540.

---

Definitions:

Insource

refers to shifting jobs or tasks that were previously outsourced back within the organization, often to maintain control or reduce costs.

Outsource

The practice of hiring third-party service providers to perform tasks, handle operations, or provide services that are either difficult to manage or are outside the company's expertise.

Customized Items

Products or services tailored to meet the specific needs or preferences of an individual customer or market segment.

Mitigate Risks

The process of taking action to minimize the likelihood and impact of undesired events or risks.