Using the Information Given Below for a Company That Uses

question 256

Essay

Using the information given below for a company that uses a perpetual inventory system,calculate the ending inventory using weighted average.
$$\begin{array} { | l | c | r | } \hline & \text { Units } & { \text { Unit Cost } } \\\hline \text { Beginning inventory } & 100 & \$10 \\\hline \text { Jan. 5 purchased } & 40 &12 \\\hline \text { Jan. 10 sold } & 60 &- \\\hline \text { Jan. 15 purchased } & 70 &13 \\\hline \text {Jan. 25 sold } & 50 &- \\\hline\end{array}$$

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Market Output

The total quantity of goods or services produced and supplied in a market at a given time.

First-move Ability

The advantage or strategic benefit gained by being the first to act or move in a given situation, often discussed within the context of game theory and competitive scenarios.

Optimal Output

The level of production where a firm maximizes its profits or minimizes its losses.