Moroni Industries Has the Following Inventory Information Assuming That a Periodic Inventory System Is Used, What Is

question 94

Multiple Choice

Moroni Industries has the following inventory information. $\begin{array}{rll}\text { July }1 & \text { Beginning Inventory } & 40 \text { units at } \$ 120 \\5 & \text { Purchases } & 240 \text { units at } \$ 112 \\14 & \text { Sale } & 160 \text { units } \\21 & \text { Purchases } & 120 \text { units at } \$ 115 \\30 & \text { Sale } & 140 \text { units }\end{array}$ Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?

• A) $11,500
• B) $11,520
• C) $33,960
• D) $33,980

---

Definitions:

MPS

Marginal Propensity to Save, expressing the portion of additional income that a household saves rather than spends.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for. It is a key indicator of economic health and consumer spending.

Consumption

The consumption of products and services by families, an essential element in measuring a nation's Gross Domestic Product (GDP).

Savings

The portion of disposable income not spent on consumption of goods and services, often placed in a deposit account.