Use the Following Data to Calculate the Cost of Ending

question 91

Multiple Choice

Use the following data to calculate the cost of ending inventory under average cost method. $$\begin{array} { l l l } \text { September } 1 & \text { Beginning Inventory } & 20 \text { units at } \$ 10 \text { each } \\\text { September } 10 & \text { Purchase } & 25 \text { units at } \$ 20 \text { each } \\\text { September } 20 & \text { Purchase } & 40 \text { units at } \$ 25 \text { each } \\\text { September } 30 & \text { Ending Inventory } & 35 \text { units }\end{array}$$

• A) $992
• B) $400
• C) $875
• D) $700

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Definitions:

Lesser Of Two Evils

A principle that suggests choosing the option that is considered less harmful or less undesirable among two poor choices.

Foreign Imports

Products or services imported from other countries for the purpose of being sold.

Trade Deficit

A scenario in which a country spends more on importing goods than it makes from exporting them, creating a trade imbalance.

Trade Deficit

A situation in which a country's imports exceed its exports, reflecting a net outflow of domestic currency to foreign markets.