A Company Purchased Inventory as Follows: 150 Units At $\$ 6$

question 59

Multiple Choice

A company purchased inventory as follows: 150 units at $\$ 6$
350 units at $\$ 7$ The average unit cost for inventory is

• A) $6.00.
• B) $6.50.
• C) $6.70.
• D) $7.00.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders.

Closely Held Corporations

Corporations in which there are relatively few shareholders; referred to as non-distributing corporations in some jurisdictions.

Annual Return

A yearly statement filed by businesses detailing important company information such as capital, membership, and accounts.

Pre-emptive Rights

Pre-emptive rights, in corporate law, are rights given to existing shareholders to purchase additional shares before they are offered to new potential shareholders, usually to maintain their proportional ownership in the company.