Roadside Company Had the Following Balances and Transactions During 2018

question 165

Multiple Choice

Roadside Company had the following balances and transactions during 2018: $$\begin{array} { | l | l | } \hline \text { Beginning Merchandise Inventory } & 30 \text { units at } \$ 74 \\\hline \text { March 10 } & \text { Sold } 28 \text { units } \\\hline \text { June 10 } & \text { Purchased } 60 \text { units at } \$ 84 \\\hline \text { October 30 } & \text { Sold 54 units } \\\hline\end{array}$$ What is the amount of the company's ending Merchandise Inventory,as disclosed in the December 31,2018 balance sheet,using the periodic LIFO inventory costing method?

• A) $504
• B) $592
• C) $672
• D) $444

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Definitions:

Long-Term Assets

Assets that are expected to provide economic value to a business for more than one year, such as property, plant, and equipment.

Economic Climate

The overall state of the economic environment, characterized by factors such as growth rates, unemployment, inflation, and consumer confidence.

Conditions

Conditions include the specific requirements, terms, or situations that affect or determine the operation of agreements, policies, or actions.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the loan amount.