Wetzel Company Has the Following Data Available If Wetzel Company Uses a Perpetual Moving-Average Inventory System, the l

question 128

Multiple Choice

Wetzel Company has the following data available: $$\begin{array} { | l | c | c | c | } \hline \text { Transaction } & \text { Units Purchased } & \text { Unit Cost } & \text { Units Sold } \\\hline \text { Beginning Inventory } & 500 & \$ 10 & \\\hline \text { March 1 Purchase } & 200 & \$ 12 & \\\hline \text { April 25 Sale } & & & 350 \\\hline \text { June 10 Purchase } & 300 & \$ 14 & \\\hline \text { July 20 Sale } & & & 250 \\\hline \text { October 30 Purchase } & 350 & \$ 15 & \\\hline \text { December 15 Sale } & & & 400 \\\hline\end{array}$$
If Wetzel Company uses a perpetual moving-average inventory system, the cost of the ending inventory on December 31 is ________. (Round average cost per unit to four decimal places and all other numbers to two decimal places.)

• A) $12,131.30
• B) $4,718.70
• C) $16,850.00
• D) $5,250.00

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Definitions:

Profit-Maximizing Condition

A state where a firm's marginal cost is equal to its marginal revenue, leading to the highest possible profit.

Resource Use

Involves the allocation and utilization of resources such as capital, labor, and materials efficiently in the production of goods and services.

Resource Demand

The need or desire for specific resources in order to produce goods or services within an economy.

Product Market

The market where end products or services are made available to consumers, businesses, and governmental bodies.