Jacana Company Uses the LIFO Inventory Method

question 45

Multiple Choice

Jacana Company uses the LIFO inventory method.During the second quarter,Jacana experienced a 100-unit liquidation in its LIFO inventory at a LIFO cost of $430 per unit.Jacana considered the liquidation temporary and expects to replace the units in the third quarter at an estimated replacement cost of $460 a unit.The cost of goods sold computation in the interim report for the second quarter will

• A)include the 100 liquidated units at the $460 estimated replacement unit cost.
• B)include the 100 liquidated units at the $430 LIFO unit cost.
• C)be understated by $3,000.
• D)be overstated by $3,000.

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Definitions:

Sensory Neurons

Neurons that transmit sensory information from the body's periphery to the central nervous system.

Sensory Neurons

These are nerve cells that are responsible for converting external stimuli from the environment into internal electrical impulses.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, connecting the CNS to limbs and organs.

Synaptic Gaps

The tiny spaces between neurons, across which neurotransmitters travel to transmit signals from one neuron to another.