Use This Information to Answer the Following Question

question 61

Multiple Choice

Use this information to answer the following question. A periodic inventory system is used.
Using the specific identification method and assuming that 50 of the items left are from the October 13 purchase and the rest are from the October 20 purchase,the cost assigned to ending inventory is

• A)$3,840.
• B)$3,312.
• C)$3,372.
• D)$3,176.

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Definitions:

Third-Quarter Income Statement

A financial report summarizing a company's revenues, expenses, and net income for the third quarter of its fiscal year.

Fan Products Operating Segment

A specific business unit within a company that focuses on the production and sales of fan-related products.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset.

Amortization Expense

The gradual charging to expense of an intangible asset's cost over its useful life.