A Company Just Starting a Business Purchased Three Inventory Items

question 80

Multiple Choice

A company just starting a business purchased three inventory items at the following prices: March 2, $150; March 7, $160; and March 15, $180.If the company sold one unit for $230 on March 10 and one unit for $250 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory?

• A)$163.34
• B)$167.50
• C)$180.00
• D)$250.00

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Definitions:

Milk Processors

Milk processors are businesses involved in the handling and converting of raw milk into finished dairy products, such as cheese, yogurt, and milk beverages, ready for consumer consumption.

Public Service

A service provided by the government to its citizens, often free of charge, aimed at improving community welfare and infrastructure.

Institutional Advertisements

Advertising campaigns aimed at building a company's brand identity rather than promoting individual products or services.

Competitive

The characteristic of constantly striving to gain an advantage over rivals in business or any other sphere of influence.