Use This Information to Answer the Following Question A Periodic Inventory System Is Used; Ending Inventory Is 151

question 135

Multiple Choice

Use this information to answer the following question. $\begin{array}{ll}\text { Beginning inventory } & 100 \text { units @\$8.00 } \\\text { Purchase-Oct. } & 200 \text { units } @ \$ 6.00 \\\text { Purchase-Dec. } & 100 \text { units } @ \$ 12.00\end{array}$
A periodic inventory system is used; ending inventory is 151 units.
What is ending inventory under FIFO?

• A) $1,406
• B) $1,606
• C) $1,306
• D) $1,506

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Definitions:

Manufacturing Process

A sequence of operations that transforms raw materials into finished products, involving both human labor and machinery.

Production Constraint

A limitation or restriction in the production process, such as limited resources or capacity, that affects output.

Constrained Resource

A limited resource within a manufacturing or production process that restricts the output volume.

Obsolete Inventory

Items in stock that are out of date or no longer in demand, which are unlikely to be sold.