A Company Had the Following Purchases During Its First Year

question 42

Multiple Choice

A company had the following purchases during its first year of operations: $$\begin{array} { | l | l | } \hline \text { January: } & \text { Purchases } \\\hline \text { February: } & 10 \text { units at } \$ 120 \\\hline \text { May: } & 20 \text { units at } \$ 130 \\\hline \text { September: } & 15 \text { units at } \$ 140 \\\hline \text { November: } & 12 \text { units at } \$ 150 \\\hline\end{array}$$ On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory?

• A)$3,640.
• B)$3,280.
• C)$3,960.
• D)$3,800.
• E)$3,500.

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Definitions:

Non Binding Price Floor

A non binding price floor is set below the market equilibrium price, having no effect on the market because it does not restrict supply or demand.

Explicit And Implicit Coercion

Refers to the overt and subtle ways in which individuals or groups may be forced or pressured into behaving in certain ways.

Desirable Consequences

Positive outcomes or benefits that result from a particular action or set of actions.

Proposed Changes

Suggestions or plans put forward for consideration or action to modify or alter existing methods, processes, or structures.