A Company Purchased 100 Units for $20 Each on January

question 24

Multiple Choice

A company purchased 100 units for $20 each on January 31.It purchased 100 units for $30 on February 28.It sold 150 units for $45 each from March 1 through December 31.If the company uses the average-cost inventory costing method,what is the amount of ending inventory on December 31?

• A) $1,000
• B) $1,250
• C) $2,250
• D) $1,500

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Definitions:

Proactive Interference

A phenomenon where old memories hinder the recall of new information.

Recognition

The cognitive process of identifying a familiar stimulus from among a variety of unfamiliar ones.

Recall

The process of retrieving information stored in the memory without the aid of cues.

Reconstruction

The process of assembling or rebuilding mental representations based on memory, influences, and expectations.