Exhibit 7-4 RJ, Inc. Had the Following Activity for an Inventory Item

question 71

Multiple Choice

Exhibit 7-4
RJ, Inc. had the following activity for an inventory item during June:

-Refer to Exhibit 7-4. Assuming RJ, Inc. uses a periodic weighted average cost flow assumption, ending inventory for June would be

• A) $512
• B) $560
• C) $768
• D) $720

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Definitions:

Income Before Taxes

Another term for pretax income, indicating the amount earned by a business before subtracting taxes.

Loss On Sale

Loss on sale occurs when the selling price of an asset is less than its carrying amount or book value, resulting in a financial loss for the seller.