Saunders Corp

question 30

Multiple Choice

Saunders Corp., which accounts for inventory using the LIFO method, had 2,000 units in beginning inventory at a cost of $40 and had purchased 500 more for $43.During the quarter, 1,300 units were sold.It is expected that the ending inventory at year end will be 1,800 units as Saunders anticipates purchasing additional units for $45.The excess replacement cost for temporary liquidation for the quarter would be:

• A)​$3,000
• B)​$6,000
• C)​$1,200
• D)​$3,600

---

Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, representing the average cost per unit.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, leading to competition based on factors other than price.

Revenue

The total amount of money received by a company or organization from its business activities, such as sales of goods or services, before any expenses are subtracted.

Double Scoop

Typically refers to two servings of ice cream, often served in a cone or cup.