Given the Following Inventory Activity, What Is Ending Inventory Using

question 60

Multiple Choice

Given the following inventory activity, what is ending inventory using the perpetual average costing method? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

• A)155 units @ $5.51
• B)80 units @ $6.00 and 15 units @ $5.50 and 60 units @ $5
• C)95 units @ $5.83 and 60 units @ $5
• D)55 units @ $6.00 and 40 units @ $5.50 and 60 units @ $5

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Definitions:

Project Profitability Index

A calculation used to determine the relative profitability of a project by dividing the present value of future cash flows by the initial investment cost.

Salvage Recovered

The amount of money or value received from selling off the remains of assets after their useful life is over or after a casualty loss.

Discount Rate

Used to calculate the present value of future cash flows, reflecting the opportunity cost of capital investment.

Cost Savings

The reduction in expenses achieved by employing more efficient methods or making favorable decisions.