The Following Information Was Available from the Inventory Records of a Company

question 3

Multiple Choice

The following information was available from the inventory records of a company for July 2008: $\begin{array} {| l|l| l|l| } \hline&& \text {unit }& \text {total }\\\hline& \text {units }& \text { cost}& \text { costs}\\\hline \text { Balance at July 1, 2008 .}&2,000&\$19.55&\$39,100\\\hline \text {Purchases: July \( 6,2008 \) . }&1,500&20.60&30,900\\\hline \text {July 16,2008 }&3,400&21.50&73,100\\\hline \text { Sales: July 7, 2008}&(1,800) \\\hline \text { July 31, 2008}&(3,200) \\\hline \text { Balance at July 31, 2008 .}&1,900\\\hline\end{array}$
Assuming that the company uses the periodic inventory system,what would be the inventory valuation at July 31,2008,using the weighted-average inventory method (rounded to the nearest dollar) ?

• A)$39,046
• B)$39,406
• C)$39,900
• D)$39,996

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Definitions:

R-chart

A control chart used in statistical process control to monitor the process variability based on ranges of sampled subsets.

Process Capability

A statistical measure of a process's ability to produce output within specified limits, commonly assessed by comparing the process variation to allowable specification limits.

Control Limits

Control Limits are statistical boundaries set within control charts that represent the acceptable range of variations in a process.

Specification Limits

Specification limits are the defined boundaries of acceptability for the values of a product or process measurements, beyond which quality control actions must be taken.