A Company Just Starting Business Made the Following Four Inventory

question 150

Multiple Choice

A company just starting business made the following four inventory purchases in June: $\begin{array}{lll}\text { June } 1 &150 \text { units } & \$390\\\text { June } 10 & 200 \text { units } & 598 \\\text { June } 15 & 200 \text { units } & 630 \\\text { June } 28 & 150 \text { units } & 510 \\&&\$2,128\end{array}$ A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using a periodic inventory system and the average-cost method, the amount allocated to the ending inventory on June 30 is

• A) $540.
• B) $608.
• C) $668.
• D) $1,520.

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Definitions:

Exceeded

means to go beyond an established limit or surpass a certain standard or level.

Lower

In economic terms, it refers to a decrease in value, price, rate, or level of a given variable or entity.

Trade Deficit

An occurrence where the total value of a country's imports surpasses the value of its exports, creating a negative trade balance.

China

A country in East Asia, the world's most populous nation, with a long history, rich culture, and significant global economic influence.