A Briefcase 4

question 16

Multiple Choice

A briefcase 4.5 in × 22 in × 11 in is filled with gold, which has a density of 19.3 g/cm3 and costs $308/oz. What is the dollar value of this gold?

• A) $5.80 × 10⁵
• B) $1.56 × 10³
• C) $3.74 × 10⁶
• D) $1.00 × 10⁴
• E) $2.81 × 10⁶

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Definitions:

LIFO Reserve

The difference between the cost of inventory calculated using the Last-In, First-Out method and the First-In, First-Out method.

FIFO Inventory Costs

An accounting method where the oldest inventory items are recorded as sold first.

LIFO Inventory Costs

An inventory valuation method where the last items placed in inventory are the first ones to be used or sold, affecting cost of goods sold and inventory value.

Cost of Goods Sold

Expenses directly related to the production of a company's sold merchandise.