Williams Company Had the Following Balances and Transactions During 2013

question 13

Multiple Choice

Williams Company had the following balances and transactions during 2013. $$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 10 \text { units at } \$ 70 \\\hline \text { June } 10 & \text { Purchased } 20 \text { units at } \$ 80 \\\hline \text { December } 30 & \text { Sold } 15 \text { units } \\\hline \text { December } 31 & \text { Replacement cost } \$ 78 \\\hline\end{array}$$ What would the company's inventory amount be on the December 31,2013 balance sheet if the perpetual LIFO method is used? (Answers are rounded to the nearest dollar.)

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

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Definitions:

Price Level

The general level of prices for goods and services in an economy at a specific point in time.

Short Run

A period in economics characterized by fixed factors of production, where only some inputs or resources can be adjusted or varied.

Decreases

A reduction in quantity, size, value, or extent of a specific economic variable or commodity.

Expected Price Level

The anticipated average price across all goods and services in an economy over a future period.