Rally Wheels, Inc What Would the Company's Ending Merchandise Inventory Cost Be on 2018

question 56

Multiple Choice

Rally Wheels, Inc. had the following balances and transactions during 2018: $$\begin{array} { | l | l | } \hline \text { Beginning Merchandise Inventory as of January 1,2018 } & 200 \text { units at } \$ 71 \\\hline \text { March } 10 & \text { Sold } 50 \text { units } \\\hline \text { June } 10 & \text { Purchased } 800 \text { units at } \$ 76 \\\hline \text { October } 30 & \text { Sold } 175 \text { units } \\\hline\end{array}$$ What would the company's ending merchandise inventory cost be on December 31, 2018 if the perpetual inventory system and the last-in, first-out inventory costing method are used?

• A) $16,850
• B) $75,000
• C) $58,150
• D) $60,800

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