Pasquale Has the Following Inventory Information A Physical Count of Merchandise Inventory on July 31 Reveals

question 80

Multiple Choice

Pasquale has the following inventory information. $\begin{array}{rllr}\text { July } 1 & \text { Beginning Inventory } & 20 \text { units at } \$ 19 & \$ 380 \\7 & \text { Purchases } & 70 \text { units at } \$ 20 & 1,400 \\22 & \text { Purchases } & 10 \text { units at } \$ 24 & 240\\& & &\$2,020\end{array}$ A physical count of merchandise inventory on July 31 reveals that there are 30 units on hand. Using the LIFO inventory method the amount allocated to cost of goods sold for July is

• A) $1390.
• B) $1414.
• C) $1470.
• D) $1440.

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Definitions:

Demand Conditions

The factors that affect consumers' desire and ability to purchase a product, influencing its market demand.

Entry Barriers

Obstacles that make it difficult for new competitors to enter an industry, which can include high startup costs, regulatory requirements, and access to distribution channels.

Price-Searcher Market

A market in which sellers set their prices based on their assessment of market demand and conditions, allowing for some degree of price flexibility.

Competitive Price-Searcher

Competitive price-searchers are firms that actively seek out the optimal pricing strategies in markets characterized by some level of product differentiation, aiming to maximize their profits.