A Company Purchased 200 Units for $30 Each on January

question 78

Multiple Choice

A company purchased 200 units for $30 each on January 31.It purchased 220 units for $33 each on February 28.It sold a total of 350 units for $45 each from March 1 through December 31.What is the cost of ending inventory on December 31 if the company uses the first-in,first-out (FIFO) inventory costing method? (Assume that the company uses a perpetual inventory system.)

• A) $2,310
• B) $300
• C) $2,100
• D) $1,800

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Definitions:

Intense Erosion

The rapid wearing away of soil and rock by water, wind, or ice.

Promontory

A ridge of land that juts out into a body of water.

Aligned Relative

The positioning of objects in a specific orientation or direction in relation to each other.

Low Tides

The state of the tide when the water level is at its lowest point, occurring between two high tides in a tidal cycle.