Use This Information to Answer the Following Question A Periodic Inventory System Is Used; Ending Inventory Is 150

question 39

Multiple Choice

Use this information to answer the following question. $$\begin{array} { l l } \text { Begrning inventory } & \text { 100 units @ \$8.00 } \\\text { Purchase-Oct. } & \text { 200 units @ } \$ 6.00 \\\text { Purchase-Dec. } & \text { 100 units } @ \$ 12.00\end{array}$$ A periodic inventory system is used; ending inventory is 150 units.
What is ending inventory under the average-cost method?

• A) $900
• B) $1,050
• C) $1,350
• D) $1,200

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Definitions:

Principal-Agent Problem

Refers to a situation in business where there is a conflict of interest between a principal (e.g., an owner or shareholder) and an agent (e.g., a CEO or manager) hired to act on the principal's behalf.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests and rights to dividends.

Workers

Workers are individuals engaged in physical or intellectual activities to produce goods or provide services in exchange for wages.

Managers

Individuals in an organization responsible for controlling or administering all or part of a company, often involved in making crucial corporate decisions.