Use This Information to Answer the Following Question A Periodic Inventory System Is Used

question 64

Multiple Choice

Use this information to answer the following question. $\begin{array}{rlrl}\text { Feb. }&1 & \text { Inventory } & 200 \text { units @ } \$ 6.00 \\&6 & \text { Purchase } & 300 \text { units @ } \$ 6.60 \\&13 & \text { Purchase } & 100 \text { units @ } \$ 7.20 \\&20 & \text { Purchase } & 200 \text { units @ } \$ 7.80 \\&25 & \text { Purchase } & 40 \text { units @ } \$ 8.40 \\&& \text { Total sales } & 620 \text { units }\end{array}$

A periodic inventory system is used.
Using LIFO,the cost assigned to ending inventory is

• A) $1,740.
• B) $4,056.
• C) $1,332.
• D) $4,464.

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Definitions:

Perfect Information

A situation in decision theory and economics where all participants have full and identical information about the elements of the game or economic situation.

Decision Tree

A graphical representation of possible solutions to a decision based on certain conditions, used in decision analysis to help identify a strategy most likely to reach a goal.

States Of Nature

Different outcomes or scenarios that can occur in decision-making situations, often uncertain and beyond the control of the decision maker.

Largest Payoff

Refers to the maximum possible gain or benefit that can be achieved in a given situation, often used in game theory and economics.