Use This Inventory Information for the Month of September to Answer

question 9

Multiple Choice

Use this inventory information for the month of September to answer the following question. Assuming that a perpetual inventory system is used, what is ending inventory (rounded) under the average-cost method?

• A) $3,666
• B) $3,712
• C) $3,208
• D) $7,734

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Definitions:

Destroyed Money

The process of physically eliminating money from circulation, typically by central banks, to manage a currency's supply.

Check Clearing

The process by which banks settle transactions by transferring money from the check writer's account to the recipient's account.

Federal Funds Rate

The interest rate at which banks lend reserve balances to other banks overnight, on an uncollateralized basis.

Discount Rate

The interest rate charged by central banks for short-term loans to commercial banks.