The Liu Company Started the Year with 1,000 Units in Inventory

question 22

Multiple Choice

The Liu Company started the year with 1,000 units in inventory, which cost $3 each. During January, it bought 7,000 units, which cost $4 each. During January, it sold 6,000 units, leaving it with 2,000 units at the end of the month. If it uses the weighted average method of accounting for inventory, the ending inventory value is

• A) 6000
• B) 7000
• C) 7750
• D) 8000

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Definitions:

Illness

A condition of poor health perceived or felt by an individual, often characterized by the presence of disease or impairment.

General Adaptation Syndrome

A three-phase process (alarm, resistance, exhaustion) that describes the body's short-term and long-term reactions to stress.

Severe Cold

An intense or acute condition of the common cold, characterized by symptoms such as fever, cough, congestion, and body aches.

Exhaustion

Describes a state of extreme physical or mental fatigue, often resulting from prolonged stress or activity without adequate rest and recovery.