Use This Information to Answer the Following Question

question 72

Multiple Choice

Use this information to answer the following question.
-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:

Degree of Inflation

The rate at which the general level of prices for goods and services is rising, thereby eroding purchasing power.

Disinflation

A reduction in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services are rising.

Phillips Curve

An economic concept that illustrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy over time.

Interest Rates

The cost of borrowing money or the compensation for the service and risk of lending money, usually expressed as a percentage rate over a period of time.