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Johnson Company had 500 units of "Tank" in its inventory at a cost of $4 each. It purchased, for $2,800, 300 more units of "Tank". Johnson then sold 400 units at a selling price of $10 each, resulting in a gross profit of $1,600. The cost flow assumption used by Johnson

a. is FIFO.

b. is LIFO.

c. is weighted average.

d. cannot be determined from the information given.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M995113

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