A Company Has Inventory of 15 Units at a Cost

question 217

Multiple Choice

A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, they purchased 10 units at $13 per unit. On August 12, they purchased 20 units at $14 per unit. On August 15, they sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory on August 15 after the sale?

• A)$140
• B)$160
• C)$210
• D)$380
• E)$590

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Definitions:

Preferred Shareholders

Preferred shareholders are investors who own shares of a company's stock with preferential rights over common stock, particularly in dividend payments and upon liquidation.

Common Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a say in company matters through voting.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, thus lending them money in exchange for periodic interest payments and the return of principal at maturity.

Stock Investment

The act of spending money to purchase shares in a company, aiming to earn dividends or sell the shares at a higher price for profit.