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:

K-complexes

Brainwaves seen in stage 2 sleep that are characterized by a brief and well-defined downward deflection followed by an upward component.

N1 Sleep

The initial stage of the sleep cycle, representing the transition from wakefulness to sleep, characterized by light sleep and reduced sensory awareness.

N2 Sleep

A stage of sleep characterized by sleep spindles and K-complexes, representing a deeper level of sleep than N1 and preceding the transition to deeper, delta-wave N3 sleep.

Restless Legs Syndrome

A neurological disorder characterized by an irresistible urge to move the legs, often accompanied by uncomfortable sensations.