A Company Has Inventory of 15 Units at a Cost

question 152

Multiple Choice

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

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

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Definitions:

Metabolism

The complex set of chemical reactions within a living organism that are necessary for the maintenance of life, involving energy production and utilization.

Food Restriction

The practice of limiting the amount and/or type of food ingested, often used for weight control or medical reasons.

Obesity

A medical condition involving excess body fat that increases the risk of health problems.

Slow Metabolism

A term describing a lower than average rate at which the body converts calories to energy, affecting weight and energy levels.