A Company Has Cost of Goods Available for Sale of $32,000

question 13

Multiple Choice

A company has cost of goods available for sale of $32,000, consisting of 8,000 units. The average cost per unit to be used to value the ending inventory:

• A)is $40.
• B)is $4.
• C)is $8.
• D)cannot be determined from the data.

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Definitions:

Negligence

Behavior that creates an unreasonable risk of harm to others.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.

Duty of Accounting

An agent’s obligation to keep an accurate account of the transactions of money and property made on behalf of the principal.

Agent

A representative authorized to act on behalf of another person or organization, especially in business or legal matters.