Using This Set of Numbers, 2, 2, 4, 6, 9

question 1

Multiple Choice

Using this set of numbers, 2, 2, 4, 6, 9, 11, 14, 18, 21, 33, calculate the variance.

• A) 9.3
• B) 31.0
• C) 66.3
• D) 87.2

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Definitions:

Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale during the period.

Perpetual Inventory System

Definition: An accounting system that continuously updates inventory records for each purchase and sale transaction.

LIFO

Last In, First Out, an accounting method where the most recently produced items are recorded as sold first.

Ending Inventory

The valuation of goods available for sale at the end of an accounting period; part of the calculation of cost of goods sold.