The Following Units of an Inventory Item Were Available for Sale

question 50

Multiple Choice

The following units of an inventory item were available for sale during the year:

The firm uses the periodic inventory system.During the year,60 units of the item were sold.
The value of ending inventory using average cost is:

• A)$1,353
• B)$1,263
• C)$1,375
• D)$1,150

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Definitions:

Equal Instalment Loans

Loans that are paid back in equal periodic payments, typically including both principal and interest components.

Interest Portion

The part of a payment that covers the interest or cost of borrowing, as distinguished from principal or repayment of the borrowed amount.

Principal Reduction

The act of paying down the outstanding balance of a loan, not including interest, to reduce the principal amount owed.

Interest Payment

The amount paid by a borrower to a lender for the use of borrowed money, usually expressed as a percentage of the principal.