Refer to the Above Table

question 86

Multiple Choice

Refer to the above table.If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4) ,equilibrium price and quantity will be:

• A) $10 and 60 units.
• B) $9 and 60 units.
• C) $8 and 80 units.
• D) $7 and 30 units.

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Definitions:

Average Costing

A method of inventory valuation where all goods are assigned the average cost of all similar goods available during the period.

FIFO

An inventory valuation method standing for “First-In, First-Out,” where the cost of the oldest inventory items are the first to be expensed.

Cost Of Production Report

A document that summarizes the production and cost activity within a manufacturing department over a specific period.

Finished Goods

Products that have completed the manufacturing process and are ready for sale.