The Following Units of an Inventory Item Were Available for Sale

question 158

Multiple Choice

The following units of an inventory item were available for sale during the year. Use this information to answer the following questions.
$$\begin{array} { l l } \text { Beginning inventory } & 10 \text { units at } \$ 55 \\\text { First purchase } & 25 \text { units at } \$ 60 \\\text { Second purchase } & 30 \text { units at } \$ 65 \\\text { Third purchase } & 15 \text { units at } \$ 70\end{array}$$ The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
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-The ending inventory cost using FIFO is

• A) $1,250
• B) $1,350
• C) $1,375
• D) $1,150

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Definitions:

Health Insurance

Health insurance is a form of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, often including contributions from both the employer and employee.

Federal Income Taxes

Taxes levied by the federal government on the annual income of individuals, corporations, trusts, and other legal entities.

Maturity Date

The specified date on a financial instrument at which the principal (or face value) is paid back to the investors and the instrument is no longer valid.