A Physical Count of Merchandise Inventory on July 31 Reveals

question 109

Multiple Choice

A physical count of merchandise inventory on July 31 reveals that there are 45 units on hand.Using the average-cost method, the value of ending inventory is

• A)$870.
• B)$900.
• C)$915.
• D)$930.

---

Definitions:

Auction

A public sale where goods or property are sold to the highest bidder.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing payroll, accounts payable, and inventories.

Simple Interest

Interest that is computed solely on the initial sum invested or loaned, not taking into account any accumulated interest from previous periods.