Williams Company Had the Following Balances and Transactions During 2013

question 26

Multiple Choice

Williams Company had the following balances and transactions during 2013. $$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 10 \text { units at } \$ 70 \\\hline \text { June } 10 & \text { Purchased } 20 \text { units at } \$ 80 \\\hline \text { December } 30 & \text { Sold } 15 \text { units } \\\hline \text { December } 31 & \text { Replacement cost } \$ 60 \\\hline\end{array}$$ What would the company's inventory amount be on the December 31,2013 balance sheet if the perpetual FIFO method is used? (Answers are rounded to the nearest dollar.)

• A) $1,200
• B) $900
• C) $1,050
• D) $1,100

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Definitions:

Brand-Loyal Customers

Individuals who consistently purchase the same brand's products or services due to satisfaction, perceived value, or emotional connection.

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing behaviors.

Co-Branding

A strategy in which two or more companies issue a single product in an effort to capitalize on the equity of each company’s brand.

Negative Publicity

Unfavorable media coverage or public opinion, which can harm a business or individual’s reputation and image.