Williams Company Had the Following Balances and Transactions During 2019

question 34

Multiple Choice

Williams Company had the following balances and transactions during 2019. $\begin{array} { | l | l | } \hline \text { Reginning inventory } & 10 \text { units at } \$ 70 \\\hline \text { June } 10 & \text { Purchased } 20 \text { units at } \$ 80 \\\hline \text { December } 30 & \text { Sold } 15 \text { units } \\\hline \text { December } 31 & \text { Rep lacement cost } \$ 60 \\\hline\end{array}$ What would the company's inventory amount be on the December 31, 2019 balance sheet if the perpetual FIFO method is used and the lower-of-cost-or-market-rule is applied?

• A)$1,200
• B)$900
• C)$1,050
• D)$1,100

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Definitions:

Financial Markets

Platforms or systems where parties engage in the exchange of financial instruments such as stocks, bonds, currencies, and derivatives.

Bell Curve

A graphical representation of a normal distribution, showing how the likelihood of variables is highest near the mean and decreases symmetrically in both directions.

Frequency Distribution

A statistical analysis showing how often various values occur within a data set, often displayed in a table or graph.

Variance

A statistical measure that represents the spread or dispersion of a set of data points or investment returns from their mean.