Nichols Company Had the Following Balances and Transactions During 2018

question 114

Multiple Choice

Nichols Company had the following balances and transactions during 2018: $$\begin{array} { | l | l | } \hline \text { Beginning Merchandise Inventory as of } & \\\text { January } 1,2018 & 300 \text { units at } \$ 82 \\\hline \text { March } 10 & \text { Sold } 70 \text { units } \\\hline \text { June } 10 & \text { Purchased } 600 \text { units at } \$ 85 \\\hline \text { October } 30 & \text { Sold } 370 \text { units } \\\hline\end{array}$$ 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) $5,740
• B) $51,000
• C) $39,100
• D) $24,600

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Definitions:

Correlation Coefficient

A numerical index that reflects the linear relationship between two variables, ranging from -1 to 1.

Linear Relationship

A relationship between two variables where the change in one variable is associated with a proportional change in the other variable.

Scatterplot

A graphical representation using dots to show the relationship between two quantitative variables.

Scatterplot

A graphical representation of data points where each value in the dataset is represented by a dot, showing the relationship between two quantitative variables.