Three Identical Units of Merchandise Were Purchased During March, as Shown

question 119

Multiple Choice

Three identical units of merchandise were purchased during March, as shown
Assume that one unit is sold on March 23 for $1,125. What is the ending inventory on March 31 using LIFO.

• A) $245
• B) $295
• C) $1,670
• D) $1,720

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Definitions:

Monthly Sales

The total revenue or units sold by a company in one calendar month.

Degree of Operating Leverage

A financial indicator that evaluates how changes in sales volume impact a company's operating earnings.

Break-even

The juncture where overall expenses match total income, indicating neither profit nor loss is present.

Unit Sales

The total quantity of an item or product sold.