[The Following Information Applies to the Questions Displayed Below

question 130

Multiple Choice

[The following information applies to the questions displayed below.]
Beech Soda,Inc.uses a perpetual inventory system.The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
On January 14,Beech Soda,Inc.sold 25 units of this product.The other 28 units remained in inventory at January 31.
-Assuming that Beech Soda uses the LIFO cost flow assumption,the 28 units of this product in inventory at January 31 have a total cost of:

• A)$400.
• B)$395.
• C)$405.
• D)$410.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders.

Price-Earnings Ratio

A valuation metric that compares a company's share price to its earnings per share.

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends, but after bankruptcy claim priority behind preferred stock.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.