Wakefield Company Uses a Perpetual Inventory System

question 3

Multiple Choice

Wakefield Company uses a perpetual inventory system.In August,it sold 2,000 units from its LIFO-base inventory,which had originally cost $35 per unit.The replacement cost is expected to be $45 per unit.The company is planning to reduce its inventory and expects to replace only 1,500 of these units by December 31,the end of its fiscal year.The company replaced 1,500 units in November at an actual cost of $50 per unit.
-Based on the preceding information,in the entry to record the replacement of the 1,500 units in November,Inventory will be debited for:

• A)$52,500.
• B)$75,000.
• C)$67,500.
• D)$60,000.

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Definitions:

Mob Violence

Acts of aggression and violence carried out by a large group of people acting together.

Bystander Effect

The bystander effect is a social psychological phenomenon where individuals are less likely to offer help to a victim when other people are present.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Emergency

A sudden, unexpected situation requiring immediate action due to potential harm to individuals or property.