A Company Just Starting Business Made the Following Four Inventory

question 146

Multiple Choice

A company just starting business made the following four inventory purchases in June: $\begin{array}{lrlr}\text { June } & 1 & 150 \text { units } & \$ 390 \\\text { June } & 10 & 200 \text { units } & 585 \\\text { June } & 15 & 200 \text { units } & 630 \\\text { June } & 28 & 150 \text { units } & 510\\&&&\$2,115\end{array}$ A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is

• A) $683.
• B) $755.
• C) $825.
• D) $1,360.

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Definitions:

Short-Term Financing

Borrowing options intended for use over a short period, often to support the day-to-day operations of a business.

Maturity Factoring

Short-term financing in which the factor purchases all of a firm’s receivables and forwards the proceeds to the seller as soon as they are collected.

Short-Term Financing

Borrowing funds or obtaining financial support for a short duration, typically less than a year, to cover immediate needs.

Factor Purchases

Transactions where a company outsources services or acquires assets, typically involving a third-party, or "factor," to facilitate business operations.