Ronald Company Had the Following Balances and Transactions During 2014

question 149

Multiple Choice

Ronald Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | } \hline \text { Beginning merchandise inventory } & 10 \text { units at } \$ 95 \\\hline \text { March } 10 & \text { Sold } 8 \text { units } \\\hline \text { June } 10 & \text { Purchased 20 units at } \$ 92 \\\hline \text { October 30 } & \text { Sold 15 units } \\\hline\end{array}$$ What is the amount of the company's Merchandise Inventory, as disclosed in the December 31, 2014 balance sheet as per the periodic weighted-average costing method?

• A) $186
• B) $140
• C) $398
• D) $651

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Definitions:

Output Changes

This term refers to variations in the level of production or output in an economy over a specific period.

Aggregate Demand Curve

A graphical representation showing the relationship between the total demand for all goods and services in an economy and the overall price level.

Expansionary Gap

A situation where the actual level of output in an economy exceeds the potential output level, usually characterized by high demand and inflationary pressures.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy public consumption or are used in the production of other goods and services.