Netta Shutters Has the Following Inventory Information A Physical Count of Merchandise Inventory on November 30 Reveals

question 59

Multiple Choice

Netta Shutters has the following inventory information. $\begin{array}{rll}\text { Nov. }1 & \text { Inventory } & 30 \text { units @ } \$ 8.00 \\8 & \text { Purchase } & 120 \text { units @ } \$ 8.30 \\17 & \text { Purchase } & 60 \text { units @ \$8.40 } \\25 & \text { Purchase } & 90 \text { units @ } \$ 8.80\end{array}$ A physical count of merchandise inventory on November 30 reveals that there are 90 units on hand. Assume a periodic inventory system is used. Ending inventory under FIFO is

• A) $738.
• B) $792.
• C) $1,740.
• D) $1,794.

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Definitions:

Previously Existing Distortions

Inefficiencies or imperfections already present in a market before a new policy or change was implemented.

Distortionary Tax

A tax that causes people to alter their behavior and economic decisions from what they would have chosen in the absence of the tax.

Principle of Neutrality

The concept that certain measures, such as fiscal policies, should be designed to have a neutral effect on economic choices and competition.

Economic Decisions

Choices made by individuals, businesses, or governments regarding the allocation of scarce resources to satisfy needs and desires.