Klinc Company Uses a Perpetual Inventory System and Had the Following

question 36

Multiple Choice

Klinc Company uses a perpetual inventory system and had the following inventory transactions for the month of June:
The June 30th inventory included 45 units from the June 4th purchase and 45 units from the June 10th purchase.
-Refer to the information provided for Klinc Company. What is the cost of ending inventory at June 30th under the specific identification method?

• A)$1,350
• B)$1,359
• C)$1,375
• D)$1,395

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Definitions:

Consumption

The process by which goods and services are used up or utilized, reflecting household spending.

Saving

The process of setting aside a portion of current income for future use.

Income Level

The amount of money earned or received by an individual or household over a certain period.

Consumption Function

An economic formula representing how consumer spending changes in relation to changes in income.