Nichols, Inc What Would Be Reported for Ending Merchandise Inventory on the \begin{array}

question 134

Multiple Choice

Nichols, Inc. had the following balances and transactions during 2018: $$\begin{array} { | l | l | } \hline \text { Beginning Merchandise Inventory as of January 1,2018 } & 300 \text { units at } \$ 80 \\\hline \text { March } 10 & \text { Sold } 80 \text { units } \\\hline \text { June } 10 & \text { Purchased } 600 \text { units at } \$ 85 \\\hline \text { October } 30 & \text { Sold } 380 \text { units } \\\hline\end{array}$$ What would be reported for Ending Merchandise Inventory on the balance sheet at December 31, 2018 if the perpetual inventory system and the first-in, first-out inventory costing method are used?

• A) $6,400
• B) $51,000
• C) $37,400
• D) $24,000

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