Use the Following Information for Questions:
Berenger Industries Had the Following

question 41

Multiple Choice

Use the following information for questions:
Berenger Industries had the following activity with one of its inventory items during the current period: $\begin{array}{llrr}&\text { Units } & \text {Unit Cost }\\\hline\text { Beginning inventory } & 30 & \$ 8.00 \\\text { Purchase } & \text { October 5 } & 80 & 10.50 \\\text { Sale } & \text { October 11 } & (40) & \\\text { Purchase } & \text { October 17 } & 60 & 12.00 \\\text { Sale } & \text { October 26 } & (70) &\end{array}$
-Using a perpetual inventory system and the FIFO cost flow assumption, the ending inventory was valued at:

• A)$500
• B)$625
• C)$720
• D)$825

---

Definitions:

Monopolistic Competitor

A market structure where many firms offer products or services that are similar but not perfect substitutes, allowing for some degree of market power.

Excess Capacity

describes a situation where a firm produces less than its total output capacity, usually resulting in inefficiencies and higher production costs.

Economic Profit

The difference between total revenue and total economic costs, including both explicit and implicit costs, reflecting the true profitability of a firm.

Elastic

A characteristic of supply or demand that indicates a high responsiveness to changes in price.