A Company Had the Following Purchases During Its First Year

question 122

Multiple Choice

A company had the following purchases during its first year of operations: $$\begin{array} { | l | l | } \hline & \text { Purchases } \\\hline \text { January. } & 10 \text { units at \$120 } \\\hline \text { February. } & 20 \text { units at \$130 } \\\hline \text { May. } & 15 \text { units at \$140 } \\\hline \text { September: } & 12 \text { units at \$150 } \\\hline \text { November: } & 10 \text { units at \$160 } \\\hline\end{array}$$ On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory?

• A) $3,640.
• B) $3,280.
• C) $3,960.
• D) $3,800.
• E) $3,500.

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Definitions:

Two-factor ANOVA

A statistical method used to analyze the effects of two independent variables on a single continuous dependent variable, allowing interaction effects to be studied.

Randomized Block Design

A statistical design for experiments that aims to reduce variation by grouping subjects that are similar into blocks before randomly assigning treatments.

Extraneous Factors

Variables that affect the outcome of an experiment, though they are not the variables being studied.

Quantitative Populations

Groups or sets of entities or individuals that can be measured numerically, focusing on measurable quantities over qualitative attributes.