Williams Company Had the Following Balances and Transactions During 2013

question 30

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 average-costing method is used? (Answers are rounded to the nearest dollar.)

• A) $1,200
• B) $1,150
• C) $1,050
• D) $900

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Definitions:

Inventory

The total amount of goods or materials held in stock by a business, available for sale or use in production.

Stockouts

Occurs when a product is not available in inventory for sale or use, leading to potential loss of sales and customer dissatisfaction.

Hybrid Strategies

Business tactics that combine elements of different traditional strategies, such as cost leadership and differentiation, to achieve competitive advantage.

Aggregate Planner

A tool or process used in production planning to determine the necessary resources and output levels over a specific time period.