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

question 81

Multiple Choice

Use this information to answer the following question. $\begin{array}{rlrl}\text { Feb. }&1 & \text { Inventory } & 200 \text { units @ } \$ 6.00 \\&6 & \text { Purchase } & 300 \text { units @ } \$ 6.60 \\&13 & \text { Purchase } & 100 \text { units @ } \$ 7.20 \\&20 & \text { Purchase } & 200 \text { units @ } \$ 7.80 \\&25 & \text { Purchase } & 40 \text { units @ } \$ 8.40 \\&& \text { Total sales } & 620 \text { units }\end{array}$

A periodic inventory system is used.
Using FIFO,the cost assigned to ending inventory is

• A) $4,056.
• B) $1,332.
• C) $1,740.
• D) $4,464.

Explain why monopolistically competitive firms face a downward-sloping demand curve.

Assess the impact of new market entrants on demand and long-run profitability for existing firms.

Understand the effect of brand name preference and its rationality in consumer choice.

Compare the efficiency of different market structures in producing welfare-maximizing levels of output.

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Definitions:

Unearned Revenues

Liabilities representing payments received for goods or services that have not yet been delivered or performed.

Deferred Revenues

Income received by a company for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.

Future Wages

Compensation that an employee is expected to earn in upcoming periods for services to be rendered.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets, provision of services, or other forms of economic benefit.