Monarch Company Uses a Weighted-Average Perpetual Inventory System, and Has

question 13

Multiple Choice

Monarch Company uses a weighted-average perpetual inventory system, and has the following purchases and sales: $$\begin{array} { | l | l | } \hline \text { January 1 } & 20 \text { units were purchased at } \$ 10 \text { per unit. } \\\hline \text { January } 12 & 12 \text { units were sold. } \\\hline \text { January 20 } & 18 \text { units were purchased at } \$ 11 \text { per unit. } \\\hline\end{array}$$ What is the value of ending inventory? (Round average cost per unit to 2 decimal places, and final answer to the nearest dollar.)

• A)$272.
• B)$120.
• C)$278.
• D)$398.
• E)$126.

---

Definitions:

Convertible Debentures

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Conversion Price

The predetermined price at which convertible security, such as a bond or preferred stock, can be converted into a specified number of shares of common stock.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the company’s profits.

Exercise Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.