Evans, Inc

question 60

Multiple Choice

Evans, Inc. had the following balances and transactions during 2017: What is the amount of the company's Merchandise Inventory, as disclosed in the December 31, 2017 balance sheet, using the periodic LIFO inventory costing method?

• A) $400
• B) $560
• C) $640
• D) $350

---

Definitions:

Law of Comparative Advantage

The principle that a country should specialize in producing and exporting goods in which it has the lowest opportunity cost and import goods in which it has a comparative disadvantage.

Specialization

The process of focusing on a limited range of goods or services to gain efficiency or expertise.

Trading Partners

Countries, organizations, or individuals that engage in the exchange of goods, services, or information.

Joint Output

Products or services that are produced together in the course of a single production process, often resulting in a correlation between their quantities or prices.