A Company Purchased 400 Units for $20 Each on January

question 42

Multiple Choice

A company purchased 400 units for $20 each on January 31.It purchased 520 units for $26 each on February 28.It sold a total of 560 units for $40 each from March 1 through December 31.What is the amount 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)$9,360
• B)$4,960
• C)$7,200
• D)$2,240

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Definitions:

Electroencephalogram

A test that measures and records the electrical activity of the brain to detect potential problems associated with this activity.

Electrical Impulses

Signals transmitted through neurons or artificial circuits, used to convey information or stimulate responses.

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The organ located in the skull responsible for coordinating sensation, intellectual and nervous activity.

Nephrolithiasis

A condition marked by the formation of kidney stones, or renal calculi, within the urinary system.