A Company Just Starting a Business Purchased Three Inventory Items

question 56

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 formula 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:

Unintentional

Actions or occurrences that happen without deliberate planning or intent, often leading to unplanned results or accidents.

Human Error

Mistakes made by individuals, often contributing to accidents, system failures, or unforeseen outcomes in various contexts.

Unintentional

Unintentional refers to actions or outcomes that occur without a deliberate plan or intent.

Human Error

Mistakes made by people, especially in the context of work or operating machinery, which can lead to accidents or inefficiencies and are often analyzed for system improvement.