Murphy,Inc.had the Following Balances and Transactions During 2017

question 3

Multiple Choice

Murphy,Inc.had the following balances and transactions during 2017.

The company maintains its records of inventory on a perpetual basis using the last-in,first-out inventory costing method.Calculate the amount of ending Merchandise Inventory at December 31,2017 using the lower-of-cost-or-market rule.

• A)$1,275
• B)$1,340
• C)$1,005
• D)$2,010

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Definitions:

Upward-Sloping Supply Curve

A graphical representation indicating that an increase in price results in an increase in the quantity of goods supplied.

Market Demand

The relation between the price of a good and the quantity purchased by all consumers in the market during a given period, other things constant; sum of the individual demands in the market.

Substitute Good

A product or service that can be used in place of another to satisfy similar needs or desires, often influencing consumer choices and market dynamics.

Equilibrium

A situation in a market where the quantity demanded equals the quantity supplied, leading to no net change in price.