A Company Purchased 200 Units for $40 Each on January

question 121

Multiple Choice

A company purchased 200 units for $40 each on January 31.It purchased 200 units for $30 each on February 28.It sold a total of 250 units for $100 each from March 1 through December 31.If the company uses the last-in,first-out inventory costing method,calculate the cost of ending inventory on December 31.(Assume that the company uses a perpetual inventory system.)

• A) $4,500
• B) $9,000
• C) $6,000
• D) $150

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Definitions:

Authenticate

The process of proving or validating the authenticity of something, often through verification of its origin or identity.

Electronic Document

A document that is produced, stored, and transmitted in a digital format.

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Consideration

The value (such as money, service, or goods) promised to another when making a contract.