Quark Inc Just Began Business and Made the Following Four Inventory

question 133

Multiple Choice

Quark Inc. just began business and made the following four inventory purchases in June: A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is

• A) $1,105.
• B) $1,100.
• C) $1,170.
• D) $1,180.

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Definitions:

T-Bills

Short-term government securities issued at a discount from par value, which mature and pay back the full face value.

Cheque Size

Cheque size typically refers to the amount of investment money a party is willing to commit in a deal, transaction, or investment opportunity.

Lockbox System

A service offered by banks to companies for the collection of payment from customers, involving the use of a special post office box to speed up the deposit process.

Miller-Orr Model

A financial management model that helps firms to decide on the optimal level of cash balances under conditions of uncertainty.