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Purchases Quantity Price Quantity x Price Purchase 1 100 $10 $1,000 Purchase 2 200 $11 $2,200 Purchase 3 100 $12 $1,200 Purchase 4 300 $14 $4,200 TOTAL 700 $8,600 Sales Quantity 150 Sale 1 Using the above information, which inventory valuation method results in the largest gross profit? Assume that the inventory balance before the first purchase was zero. Select one: O a. FIFO O b. Average cost O c. Periodic Inventory о d. None of the available choices

Purchases Quantity Price Quantity x Price Purchase 1 100 $10 $1,000 Purchase 2 200 $11 $2,200 Purchase 3 100 $12 $1,200 Purchase 4 300 $14 $4,200 TOTAL 700 $8,600 Sales Quantity 150 Sale 1 Using the above information, which inventory valuation method results in the largest gross profit? Assume that the inventory balance before the first purchase was zero. Select one: O a. FIFO O b. Average cost O c. Periodic Inventory о d. None of the available choices

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Purchases Quantity Price Quantity x Price Purchase 1 100 $10 $1,000 Purchase 2 200 $11 $2,200 Purchase 3 100 $12 $1,200 Purchase 4 300 $14 $4,200 TOTAL 700 $8,600 Sales Quantity 150 Sale 1 Using the above information, which inventory valuation method results in the largest gross profit? Assume that the inventory balance before the first purchase was zero. Select one: O a. FIFO O b. Average cost O c. Periodic Inventory о d. None of the available choices
Transcribed Image Text:Purchases Quantity Price Quantity x Price Purchase 1 100 $10 $1,000 Purchase 2 200 $11 $2,200 Purchase 3 100 $12 $1,200 Purchase 4 300 $14 $4,200 TOTAL 700 $8,600 Sales Quantity 150 Sale 1 Using the above information, which inventory valuation method results in the largest gross profit? Assume that the inventory balance before the first purchase was zero. Select one: O a. FIFO O b. Average cost O c. Periodic Inventory о d. None of the available choices
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