Use This Inventory Information for the Month of June to Answer

question 149

Multiple Choice

Use this inventory information for the month of June to answer the following question. $\begin{array}{llll}\text { June } & 1 & \text { Beginning inventory } & 10 \text { units @ } \$120\\& 5 & \text { Purchase } & 60 \text { units } @ \$ 112\\&14 & \text { Sale } & 40 \text { units } \\&21 & \text { Purchase } & 30 \text { units @ } \$ 116 \\&30 & \text { Sale } & 28 \text { units }\end{array}$
Assuming that a periodic inventory system is used,what is cost of goods sold on a LIFO basis?

• A) $7,696
• B) $7,736
• C) $3,664
• D) $3,704

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Definitions:

Bar Graph

A graph that uses bars of varying heights or lengths to show the comparative sizes of different observations of a variable.

Linear Curve

A linear curve is a straight line graphically showing the relationship between two variables, with a constant slope and no curvature.

Slope

In mathematics, the measure of the steepness or incline of a line, expressed as the ratio of the vertical change to the horizontal change.

Scatter Diagram

A graph that shows points that correspond to actual observations of the x- and y-variables; a curve is usually fitted to the scatter of points to indicate the trend in the data.