Assume That Three Identical Units of Merchandise Were Purchased During

question 101

Multiple Choice

Assume that three identical units of merchandise were purchased during October, as follows:
$$\begin{array} { | l | c | l | c | c | } \hline & & & \text { Units } & \text { Cost } \\\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \\\hline & 12 & \text { Purchase } & 1 & 13 \\\hline & 28 & \text { Purchase } & \underline { 1 } & \underline { 15 } \\\hline \text { Total } & & & 3 & \$ 33 \\\hline\end{array}$$
-One unit is sold on October 31 for $28. Using the table provided, determine gross profit under the FIFO method.

• A) $28
• B) $13
• C) $15

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Definitions:

Governor Adjusting Screw

A component in machinery that allows for the adjustment of the governor, which regulates the engine speed by controlling fuel intake.

Cutout Pressure

The pressure level at which a pressure switch deactivates, or a safety valve opens to prevent excessive pressure build-up in a system.

PMI

Project Management Institute, a global organization that offers certifications and promotes standards for project management.

Relay Valve

In air brake systems, a valve that receives a control signal and then uses a local supply of air to send out to actuator devices. Most relay valves replicate the signal pressure valve to the out circuit, but some are designed to amplify or modulate the signal.