Apple-A-Day Company Has the Following Inventory Data A Physical Count of Merchandise Inventory on July 31 Reveals

question 193

Multiple Choice

Apple-A-Day Company has the following inventory data: $$\begin{array} { r l r r } \text { July } 1 & \text { Beginning inventory } & 40 \text { units at } \$ 20 & \$ 800 \\7 & \text { Purchases } & 140 \text { units at } \$ 21 & 2,940 \\22 & \text { Purchases } & 20 \text { units at } \$ 22 & 440\\&&&\$4,180\end{array}$$ A physical count of merchandise inventory on July 31 reveals that there are 50 units on hand.Using the LIFO inventory method the amount allocated to cost of goods sold for July is

• A)$3170.
• B)$3080.
• C)$3110.
• D)$3010.

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Definitions:

Labor Cost

The total expenditure incurred by employers for the wages, benefits, and taxes of their workforce.

Marginal Revenue Productivity

The additional revenue generated by hiring one more unit of a factor of production, such as labor.

Profit-maximizing

A strategy or point at which a business reaches the highest possible difference between its total revenues and total costs.

Resources

Inputs or factors used in the production of goods and services, typically categorized into labor, capital, land, and entrepreneurship.