Williams Company Had the Following Balances and Transactions During 2014

question 86

Multiple Choice

Williams Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | } \hline \text { Beginning Inventory } & 10 \text { units at } \$ 70 \\\hline \text { June 10 } & \text { Purchased } 20 \text { units at } \$ 80 \\\hline \text { December 30 } & \text { Sold } 15 \text { units } \\\hline \text { December 31 } & \text { Replacement cost } \$ 68 \\\hline\end{array}$$ Williams maintains its records of inventory on a perpetual basis using the last-in, first-out method. Calculate the amount of ending Merchandise Inventory at December 31, 2014 using the lower-of-cost-or-market rule.

• A) $1,200
• B) $1,360
• C) $1,020
• D) $2,040

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Definitions:

Egocentrism

A cognitive bias that leads to difficulty in understanding or acknowledging the viewpoint of others, often seen in the early stages of childhood development.

Young Apprentices

Individuals, often minors, who are learning a trade or craft from a skilled employer, gaining practical experience while often receiving some form of education.

Jean Piaget

A Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development.

Lev Vygotsky

A psychologist from Russia recognized for his contributions to understanding cognitive growth, especially his theory on the Zone of Proximal Development.