Kip Started a Wholesale Store This Year Selling Bulk Peanut

question 71

Multiple Choice

Kip started a wholesale store this year selling bulk peanut butter. In January of this year, Kip purchased an initial five tubs of peanut butter for a total cost of $5,000. In July, Kip purchased three tubs for a total cost of $6,000. Finally, in November Kip bought two tubs for a total cost of $1,000. Kip sold six tubs by year-end. What is Kip's ending inventory under the FIFO cost-flow method?

• A)$12,000
• B)$6,000
• C)$5,000
• D)$2,500
• E)$1,000

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Definitions:

Social Comparison

Social Comparison is the process by which individuals evaluate their own abilities, qualities, and situations against those of others to form judgments about themselves.

Job Characteristics Model

A theory that proposes that the nature of an individual’s job or the characteristics of the work can influence their motivation, satisfaction, and performance.

Kelly's Covariation Model

A theory that explains how people attribute causes to events based on the consistency, distinctiveness, and consensus of the information available.

Internal Factors

Elements within an individual or organization that influence behavior, decisions, and outcomes, such as personal skills or organizational culture.