A Company Markets a Climbing Kit and Uses the Perpetual

question 25

Multiple Choice

A company markets a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows:
$\begin{array}{|l|l|}\hline \text { January 1: } & \text { Beginning balance of 18 units at \$13 each. } \\\hline \text { January 12: } & \text { Purchased } 30 \text { units at \$14 each. } \\\hline \text { January 19: } & \text { Sold } 24 \text { units at } \$ 30 \text { selling price each. } \\\hline \text { January 20: } & \text { Purchased } 24 \text { units at } \$ 17 \text { each. } \\\hline \text { January 27: } & \text { Sold } 27 \text { units at } \$ 30 \text { selling price each. } \\\hline\end{array}$
If the ending inventory is reported at $276, which inventory method was used?

• A) LIFO method
• B) FIFO method
• C) Weighted-average method
• D) Specific identification method
• E) Retail inventory method

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Definitions:

Executives

Individuals who hold senior management positions within an organization, responsible for decision-making and strategic direction.

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The process of assessing or examining something in a way that is not influenced by personal feelings, interpretations, or prejudice.

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A well-defined understanding of one's own identity, values, and beliefs.

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Fundamental beliefs or principles that guide an organization's or individual's actions and decisions.