Grape Gratuities Company Has the Following Inventory Data A Physical Count of Merchandise Inventory on July 30 Reveals

question 15

Multiple Choice

Grape Gratuities Company has the following inventory data: $$\begin{array} { r l r r } \text { July } 1 & \text { Beginning inventory } & 40 \text { units at } \$ 20 & \$ 800 \\7 & \text { Purchases } & 140 \text { units at } \$ 21 & 2,940 \\22 & \text { Purchases } & 20 \text { units at } \$ 22 & { 440 }\\&&& { \$ 4,180 }\end{array}$$ A physical count of merchandise inventory on July 30 reveals that there are 50 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is

• A)$1,170.
• B)$1,010.
• C)$1,070.
• D)$1,100.

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Definitions:

Injunction

A court decree ordering a person to do or to refrain from doing a certain act.

Capital Asset Pricing Model

The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Nondiversifiable Risk

Risk that cannot be eliminated by investing in many projects or by holding the stocks of many companies.

Diversifiable Risk

Risk that can be eliminated either by investing in many projects or by holding the stocks of many companies.