A Company Just Began Business and Made the Following Four

question 100

Multiple Choice

A company just began business and made the following four inventory purchases in June: $$\begin{array} { r r r r } \text { June } & 1 & 150 \text { units } & \$ 990 \\\text { June } & 10 & 200 \text { units } & 1,344 \\\text { June } & 15 & 200 \text { units } & 1,368 \\\text { June } & 28 & 150 \text { units } & 1,062 \\& & & \$ 4,764\end{array}$$ A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand.Using the average-cost method the amount allocated to the ending inventory on June 30 is

• A)$1361.
• B)$1416.
• C)$1320.
• D)$1344.

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Definitions:

Distributive Property

A fundamental property of algebra stating that a(b + c) = ab + ac, allowing the distribution of multiplication over addition or subtraction.

Distributive Property

A property indicating that for any three numbers, the product of a number and the sum of the other two is equal to the sum of the individual products of the number with each of the other two.

Arithmetic

A branch of mathematics that deals with numbers and the basic operations such as addition, subtraction, multiplication, and division.