Use the Following Information for Questions
Transactions for the Month

question 34

Multiple Choice

Use the following information for questions
Transactions for the month of June were: $$\begin{array} { r r r r r r } { \text { Purchases } } && { \text { Sales } } \\\hline \text { June } 1 & \text { (balance) } 800 @ \$ 3.20 & \text { June } 2 & 600 @ \$ 5.50 \\3 & 2,200 @ 3.10 & 6 & 1,600 @ 5.50 \\7 & 1,200 @ 3.30 & 9 & 1,000 @ 5.50 \\15 & 1,800 @ 3.40 & 10 & 400 @ 6.00 \\22 & 500 @ 3.50 & 18 & 1,400 @ 6.00 \\& & 25 & 200 @ 6.00\end{array}$$
-Assuming that perpetual inventory records are kept in units only, the ending inventory on an average-cost basis, rounded to the nearest dollar, is

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Definitions:

Perpetual Inventory

A continuous tracking system for inventory that records the sale or purchase of inventory in real-time through the use of computerized systems.

Accounts Payable

Debts of a company reflecting the money owed to lenders or suppliers for products and services acquired on credit.

Inventory

All products and materials that a company holds, aimed at either resale or being incorporated into manufacturing processes.

FOB Shipping Point

A term of sale indicating that the buyer assumes responsibility for shipping costs and risk of loss once the seller has delivered the goods to the shipping carrier.