Morton Uses the Moving Average Flow Assumption

question 49

Multiple Choice

Morton uses the moving average flow assumption. On January 1, there were 180 units on hand and the total inventory cost was $900. On January 10, 40 more units were purchased at a cost of $6 per unit. Sales included 20 units on January 3 and 60 units on January 17. What was the total cost of goods sold recorded for the units sold on January 17?

• A) $728
• B) $330
• C) $100
• D) $312

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Definitions:

Null Hypothesis

A statement in hypothesis testing that there is no significant difference or effect, serving as the default assumption to be tested against.

Critical Value(s)

Specific point(s) on the scale of a test statistic beyond which we reject the null hypothesis in statistical testing.

P-Value

Under the assumption that the null hypothesis is valid, it is the probability of observing test results that are as extreme or even more so than the ones actually observed.

Sample Evidence

Data or material obtained from a select group out of a larger population, used to infer or make generalizations about the population.