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

question 31

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 average-cost method the value of ending inventory is

• A) $585.
• B) $606.
• C) $630.
• D) $660.

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Definitions:

Production Possibility Frontiers

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, demonstrating the trade-offs between choices of production.

Maximum Efficiency

The optimal use of resources to achieve the best possible output or outcome without wasting any resources.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical or involuntary unemployment.

Decreasing Opportunity Costs

A situation in which the opportunity costs of resources decrease as the production of one good increases, often due to factors like improved technology or specialization.