A Company Just Starting a Business Purchased Three Inventory Items

question 68

Multiple Choice

A company just starting a business purchased three inventory items at the following prices: March 2, $75; March 7, $80; and March 15, $90.If the company sold one unit for $115 on March 10 and one unit for $125 on March 20 and uses the average cost method in a perpetual inventory system, what is the cost of ending inventory?

• A)$81.67
• B)$83.75
• C)$90.00
• D)$125.00

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Definitions:

Environment

The sum of all external conditions and influences affecting the life, development, and survival of organisms.

Political Structure

The organization of government and the distribution of power within a society.

Gender Imbalance

A demographic disparity where the number of individuals of one gender significantly exceeds the number of individuals of the other gender within a population.

China

A country in East Asia, the world's most populous nation.