Jacob Company Had the Following Balances and Transactions During 2019

question 106

Multiple Choice

Jacob Company had the following balances and transactions during 2019: $$\begin{array} { | l | l | } \hline \text { Beginning Merchandise } & \\\text { Inventory } & 13 \text { units at } \$ 93 \\\hline \text { March 10 } & \text { Sold 11 units } \\\hline \text { Iune 10 } & \text { Purchased 26 units at } \$ 89 \\\hline \text { October 30 } & \text { Sold 20 units } \\\hline\end{array}$$ 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) $116
• B) $89
• C) $289
• D) $723

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Return On Total Assets

A financial ratio that measures a company's ability to generate earnings from its assets, calculated by dividing net income by total assets.

Market Price

The present cost at which a service or asset is available for purchase or sale in the market.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.