Jacob, Inc What Is the Amount of the Company's Ending Merchandise Inventory

question 58

Multiple Choice

Jacob, Inc. had the following balances and transactions during 2019: $$\begin{array} { | l | l | } \hline \text { Beginning Merchandise Inventory } & 11 \text { units at } \$ 92 \\\hline \text { March 10 } & \text { Sold 8 units } \\ \hline \text { June } 10 & \text { Purchased } 33 \text { units at } \$ 89 \\\hline \text { October 30 } & \text { Sold 27 units } \\\hline\end{array}$$ What is the amount of the company's ending Merchandise Inventory, as disclosed in the December 31, 2019 balance sheet, using the periodic weighted-average inventory costing method? (Round the unit costs to two decimal places and total costs to the nearest dollar.)

• A) $109
• B) $89
• C) $326
• D) $808

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Definitions:

Confirmation Bias

The tendency to seek information that supports one’s beliefs while not pursuing disconfirming information.

External Attribution

The process of attributing the cause of a person's behavior to situational factors outside the person.

Self-Serving Bias

The tendency to attribute one’s successes to personal factors and one’s failures to situational factors.

Fundamental Bias

An inherent inclination or prejudice that consistently affects judgement or decision-making.