A Company Uses the Periodic Inventory System and Had the Following

question 60

Multiple Choice

A company uses the periodic inventory system and had the following activity during the current monthly period. $$\begin{array} { | l | l | l | } \hline \text { November 1: } & \text { Beginning inventory } & 100 \text { units } @ \$ 20 \\\hline \text { November } 5 : & \text { Purchased } & 100 \text { units } @ \$ 22 \\\hline \text { November } 8 : & \text { Purchased } & 50 \text { units } @ \$ 23 \\\hline \text { November 16: } & \text { Sold } & 200 \text { units } @ \$ 45 \\\hline \text { November 19: } & \text { Purchased } & 50 \text { units } @ \$ 25 \\\hline\end{array}$$ Using the weighted-average inventory method, the company's ending inventory would be:

• A)$4,400
• B)$2,250
• C)$2,400
• D)$2,200
• E)$2,000

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Definitions:

Make-Or-Buy Analysis

An evaluation process used in business to determine whether products, parts, or components should be produced in-house or purchased from an external supplier.

Supply-Chain Strategies

Plans and methods developed to manage and improve the flow of goods and materials, information, and finances across the supply chain.

Standardized Data-Transmittal Format

A uniform method or protocol for sending and receiving data between different systems, ensuring compatibility and efficient processing.

Customization

The process of modifying products or services to meet specific customer requirements or preferences.