Priscilla Has the Following Inventory Information A Physical Count of Merchandise Inventory on July 31 Reveals

question 51

Multiple Choice

Priscilla has the following inventory information. $$\begin{array} { r l l r } \text { July } 1 & \text { Beginning Inventory } & 20 \text { units at } \$ 19 & \$ 380 \\7 & \text { Purchases } & 70 \text { units at } \$ 20 & 1,400 \\22 & \text { Purchases } & 10 \text { units at } \$ 23 & { 230 } \\&&&{ \$ 2,010 }\end{array}$$ A physical count of merchandise inventory on July 31 reveals that there are 35 units on hand. Using the average-cost method, the value of ending inventory is

• A) $680.
• B) $704.
• C) $723.
• D) $730.

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Definitions:

Rule of Reason Test

A legal doctrine used in US antitrust law that evaluates the reasonableness of a restrictive practice based on its impact on competition.

Sherman Antitrust Act

A foundational piece of U.S. legislation passed in 1890 designed to combat anticompetitive practices, reduce market monopolies, and preserve fair competition.

Restraint of Trade

Legal phrase relating to practices or agreements that restrict competition or limit market entry.

Clayton Act

U.S. antitrust law aimed at increasing competition and preventing monopolies by prohibiting certain actions that lead to anti-competitiveness.