A Company Just Starting a Business Purchased Three Inventory Items

question 63

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:

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Preattentive Processes

Cognitive processes that occur without conscious awareness, automatically extracting certain elements from the environment.

Divergent Processes

Cognitive operations that involve thinking in multiple directions to generate a variety of solutions to problems.

Attentional Blink

A brief period after detecting one stimulus during which a person cannot perceive a second stimulus, despite being able to see it.