Henri Company's Inventory Records Show the Following Data A Physical Inventory on December 31 Shows 3000 Units on Units

question 207

Multiple Choice

Henri Company's inventory records show the following data: $\begin{array}{llrr}&&\text { Units }&\text { Unit Cost }\\\text { Inventory,}&\text { January 1 } & 10,000 & \$ 9.20 \\\text { Purchases: } & \text { June } 18 & 9,000 & 8.00 \\&\text { November 8 } & 6,000 & 7.25\end{array}$
A physical inventory on December 31 shows 3000 units on hand. Henri sells the units for $12 each. The company has an effective tax rate of 20%. Henri uses the periodic inventory method. Under the FIFO method the December 31 inventory is valued at

• A) $21750.
• B) $24450.
• C) $25800.
• D) $27600.

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced with a fixed amount of resources.

Capacity

The maximum output level that a firm, industry, or economy can sustain under the current conditions.

Efficiently

The ability to achieve a desired result without wasting materials, time, or energy.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.